> For the complete documentation index, see [llms.txt](https://bugfinance.gitbook.io/bugfinance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://bugfinance.gitbook.io/bugfinance/protocol/liquidity-provisioning.md).

# Liquidity Provisioning

Users can provide liquidity to Bug Finance pools in exchange for LP tokens. Staking LP tokens on the platform makes users eligible for <mark style="color:purple;">$BUG</mark> emissions, with base emission rates determined by Bug Finance gauges, controlled by <mark style="color:purple;">veBUG</mark> voters. To acquire <mark style="color:purple;">veBUG</mark>, users must stake the liquidity provided in $BUG paired LPs that are whitelisted by the team or stake <mark style="color:purple;">$BUG</mark> 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.

<figure><img src="https://3418705969-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FQtUaZmkHcxg5V4ycBjOP%2Fuploads%2FJy3ZxYZXKdoRAQx9tHjF%2Fimage.png?alt=media&amp;token=61cd577d-283e-4973-8e25-adac7c637fae" alt=""><figcaption></figcaption></figure>

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 <mark style="color:purple;">$BUG</mark> and partner protocols LP’ing with <mark style="color:purple;">$BUG</mark>, ultimately streamlining the trading experience and lowering slippage across the platform.

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