Bug Finance
  • 🪲Introduction
    • Welcome To Bug Finance
    • Introduction from the Team
    • Our Mission
    • Why Polygon?
  • 🐛Get started
    • Wallet Setup
    • Bridging to Polygon
  • 🕸️Protocol
    • Bug Finance's Reimagined ve(3,3)
    • BUG Liquidity Pools
    • Liquidity Provisioning
    • Staking & Exit Mechanism
    • Fee Structure
    • Whitelisting
    • Gauge Voting & Bribing
    • Efficient & Beneficial Bribing
  • 🦋Tokenomics
    • Tokens
    • Initial Supply & Emission Schedule
    • veBUG
  • 🐝The Swarm - BUG NFTs
    • The Swarm - Introduction
    • The Art
    • Utility
    • Mint details
  • ℹ️Additional Info
    • Brand assets
    • Security
  • 🐦Bug Twitter
  • 🕸️Bug Website
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  1. Protocol

Liquidity Provisioning

PreviousBUG Liquidity PoolsNextStaking & Exit Mechanism

Last updated 1 year ago

Users can provide liquidity to Bug Finance pools in exchange for LP tokens. Staking LP tokens on the platform makes users eligible for $BUG emissions, with base emission rates determined by Bug Finance gauges, controlled by veBUG voters. To acquire veBUG, users must stake the liquidity provided in $BUG paired LPs that are whitelisted by the team or stake $BUG token.

Bug Finance also introduces the LP Boosted Staking mechanism to ensure deep liquidity across both BUG pools and normal LPs. This innovative system allows users to stake normal LP tokens for an unlimited time while receiving a 2x boost in emissions. Instead of locking the LP tokens for a fixed period, an exit penalty is applied, which decreases over time until it reaches 0%. The exit penalty is calculated based on the APR of the pool in which the tokens are staked, ensuring users reach a break-even point within 4 weeks.

The protocol router evaluates both pool types to determine the most efficient price quotation and trade execution route available. To protect against flash loan attacks, the router will use 30-minute TWAPs (time-weighted average prices). The router doesn't require upkeep (external maintenance).

The deeper the liquidity of a given pool (More TVL), the smaller the slippage it will offer. Hence why we decided to create our unique voting mechanism. Bug Finance will create deep liquidity for $BUG and partner protocols LP’ing with $BUG, ultimately streamlining the trading experience and lowering slippage across the platform.

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