The Lady Bug could provide a lot more gameplay possibilities.  To keep it simple I would just allow it for movement and replacing the player melee with a ladybug attack.  Then you could secure the lady bug to the hitching post to prevent losing your ride.  I would prevent the ladybug from  targeting player characters or receiving player dmg while wearing the saddle.  Saddle recipe: 6x berry leather 4x mite fuzz, 4x silk string.  Hitching post recipe: 2x sprig 2x crude rope.  The hitching post recipe should be simple so it can be build or placed wherever you want to park the ladybug.

Ive considered other recipe components like acorn, really it’s up to design for how the saddle would look to determine is components but berry leather and silk string would keep it as an end tier item.  Plus who hasn’t already thought about riding the ladybug through grass and weeds into battle against all the largest ground insects.
 

P.S. Really enjoy the game, keep the content coming.

Maybe even an additional ability or mod that could be added to the ladybug or saddle that allows you to store and transport large amounts of grass and weed stems on either side.  Making the ladybug a cargo transport.