Agouti-signaling protein is a protein that in humans is encoded by the ASIP gene. It is responsible for the distribution of melanin pigment in mammals. Agouti interacts with the melanocortin 1 receptor to determine whether the melanocyte (pigment cell) produces phaeomelanin (a red to yellow pigment), or eumelanin (a brown to black pigment). This interaction is responsible for making distinct light and dark bands in the hairs of animals such as the agouti, which the gene is named after. In other species such as horses, agouti signalling is responsible for determining which parts of the body will be red or black. Mice with wildtype agouti will be grey-brown, with each hair being partly yellow and partly black. Loss of function mutations in mice and other species cause black fur coloration, while mutations causing expression throughout the whole body in mice cause yellow fur and obesity.

The agouti-signaling protein (ASIP) is a competitive antagonist with alpha-Melanocyte-stimulating hormone (α-MSH) to bind with melanocortin 1 receptor (MC1R) proteins. Activation by α-MSH causes production of the darker eumelanin, while activation by ASIP causes production of the redder phaeomelanin. This means where and while agouti is being expressed, the part of the hair that is growing will come out yellow rather than black.

In mice, the agouti gene encodes a paracrine signalling molecule that causes hair follicle melanocytes to synthesize the yellow pigment pheomelanin instead of the black or brown pigment eumelanin. Pleiotropic effects of constitutive expression of the mouse gene include adult-onset obesity, increased tumor susceptibility, and premature infertility. This gene is highly similar to the mouse gene and encodes a secreted protein that may (1) affect the quality of hair pigmentation, (2) act as an inverse agonist of alpha-melanocyte-stimulating hormone, (3) play a role in neuroendocrine aspects of melanocortin action, and (4) have a functional role in regulating lipid metabolism in adipocytes.

In mice, the wild type agouti allele (A) presents a grey phenotype, however, many allele variants have been identified through genetic analyses, which result in a wide range of phenotypes distinct from the typical grey coat. The most widely studied allele variants are the lethal yellow mutation (A^y) and the viable yellow mutation (A^vy) which are caused by ectopic expression of agouti. These mutations are also associated with yellow obese syndrome which is characterized by early onset obesity, hyperinsulinemia and tumorigenesis. The murine agouti gene locus is found on chromosome 2 and encodes a 131 amino acid protein. This protein signals the distribution of melanin pigments in epithelial melanocytes located at the base of hair follicles with expression being more sensitive on ventral hair than on dorsal hair. Agouti is not directly secreted in the melanocyte as it works as a paracrine factor on dermal papillae cells to inhibit release of melanocortin. Melanocortin acts on follicular melanocytes to increase production of eumelanin, a melanin pigment responsible for brown and black hair. When agouti is expressed, production of pheomelanin dominates, a melanin pigment that produces yellow or red colored hair.

Agouti signalling peptide adopts an inhibitor cystine knot motif. Along with the homologous Agouti-related peptide, these are the only known mammalian proteins to adopt this fold. The peptide consists of 131 amino acids.

The lethal yellow mutation (A^y) was the first embryonic mutation to be characterized in mice, as homozygous lethal yellow mice (A^y/ A^y) die early in development, due to an error in trophectoderm differentiation. Lethal yellow homozygotes are rare today, while lethal yellow and viable yellow heterozygotes (A^y/a and A^vy/a) remain more common. In wild-type mice agouti is only expressed in the skin during hair growth, but these dominant yellow mutations cause it to be expressed in other tissues as well. This ectopic expression of the agouti gene is associated with the yellow obese syndrome, characterized by early onset obesity, hyperinsulinemia and tumorigenesis.

The lethal yellow (A^y) mutation is due to an upstream deletion at the start site of agouti transcription. This deletion causes the genomic sequence of agouti to be lost, except the promoter and the first non-encoding exon of Raly, a ubiquitously expressed gene in mammals. The coding exons of agouti are placed under the control of the Raly promoter, initiating ubiquitous expression of agouti, increasing production of pheomelanin over eumelanin and resulting in the development of a yellow phenotype.

The viable yellow (A^vy) mutation is due to a change in the mRNA length of agouti, as the expressed gene becomes longer than the normal gene length of agouti. This is caused by the insertion of a single intracisternal A particle (IAP) retrotransposon upstream to the start site of agouti transcription. In the proximal end of the gene, an unknown promoter then causes agouti to be constitutionally activated, and individuals to present with phenotypes consistent with the lethal yellow mutation. Although the mechanism for the activation of the promoter controlling the viable yellow mutation is unknown, the strength of coat color has been correlated with the degree of gene methylation, which is determined by maternal diet and environmental exposure. As agouti itself inhibits melanocortin receptors responsible for eumelanin production, the yellow phenotype is exacerbated in both lethal yellow and viable yellow mutations as agouti gene expression is increased.