Update README.md

README.md

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----
-license: mit
----
+---
+license: mit
+---
+# gguf-code: IDE AI Coding Assistant
+
+Monster coding agent lives in your IDE - moving beyond a CLI bridge to a fully native IDE AI assistant.
+
+![screenshot](https://raw.githubusercontent.com/mochiyaki/code/master/demo.gif)
+
+Shipped to [vscode marketplace](https://marketplace.visualstudio.com/items?itemName=gguf.gguf-code) and it's compatible IDEs, i.e., cursor, windsurf, antigravity, etc., [marketplaces](https://open-vsx.org/extension/gguf/gguf-code)
+
+## Features
+
+- **Native Chat Interface**: Deeply integrated webview clean ui for smooth chat interactions inside VS Code (and/or its clone/fork IDEs).
+- **Embedded AI Engine**: Run Coder's powerful AI logic directly within the extension process - no external CLI tool required.
+- **Project-Aware Context**: Automatically understands your workspace structure and active files.
+- **Smart Tools**:
+    - `read_file`: Intelligently reads file contents with progressive loading for large files.
+    - `write_file`, `find_files`, and more (Coming Soon).
+- **Live Diff Preview**: Preview AI-suggested code changes with standard VS Code diff views.
+- **Diagnostics Integration**: Uses LSP diagnostics to help fix errors in your code.
+
+## Requirements
+
+- Visual Studio Code version 1.104.0 or higher
+- `coder.config.json` in your workspace root (for configuring AI providers).
+
+## Getting Started
+
+1.  **Installation**: Install the extension from the VS Code Marketplace or via `.vsix`.
+2.  **Configuration**: Ensure you have a `coder.config.json` in your project root (see example below, can be any OpenAI compatible API or local/self-hosted API).
+
+    lmstudio (localhost) example:
+    ```json
+    {
+      "coder": {
+        "providers": [
+          {
+            "name": "lmstudio",
+            "models": [
+              "openai/gpt-oss-20b"
+            ],
+            "baseUrl": "http://localhost:1234/v1"
+          }
+        ]
+      }
+    }
+    ```
+    
+    ollama (localhost) example:
+    ```json
+    {
+      "coder": {
+        "providers": [
+          {
+            "name": "ollama",
+            "models": [
+              "gpt-oss:20b"
+            ],
+            "baseUrl": "http://localhost:11434/v1"
+          }
+        ]
+      }
+    }
+    ```
+
+    fetch from any api provider, see example below:
+    ```json
+    {
+      "coder": {
+          "providers": [
+            {
+              "name": "openrouter",
+              "baseUrl": "https://openrouter.ai/api/v1",
+              "apiKey": "your-api-key",
+              "models": ["anthropic/claude-4.5-sonnet"]
+            }
+          ]
+      }
+    }
+    ```
+    
+3.  **Launch**: Click the "Code" monster icon in the Activity Bar (left sidebar) to open the chat.
+
+## Usage
+
+- **Chat**: Type naturally in the chat window. "Explain this file", "Fix this bug", etc.
+- **Context**: The assistant automatically knows about your open files.
+
+## Architecture
+
+This extension has migrated from a thin client (CLI bridge) to a thick client architecture:
+
+- **Frontend**: React + Vite (Webview).
+- **Backend**: Node.js Extension Host (running `ai-sdk-client`).
+- **Communication**: VS Code Message Passing API.
+
+## Development
+
+```bash
+npm install
+
+# Build both Webview and Extension
+npm run build
+
+# Watch mode (rebuilds on change)
+
+# Terminal 1:
+npm run watch:webview
+
+# Terminal 2:
+npm run watch
+```
+
+## Contributing
+
+Contributions are welcome!
+
+## License
+
+MIT