My sim put the Composting Container upgrade on her toilet. The description says: "Transforms waste material into a compost and reduces water usage. May spontaneously combust if compost is not used." ...
You can use compost to feed the bugs. The toilet will never catch fire if you use it to feed the bugs. The problem I have with the bugs is they're like the cow plant. Try to feed them before putting your sim to bed and they don't need food. By the time your sim wakes up they're starving and sometimes dead. I lost many a cow plant this way.
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