# \[BIP-43\] Redeem Treasury FEI for USDC

**URL:** <https://forum.balancer.fi/t/bip-43-redeem-treasury-fei-for-usdc/3599>\
**Category:** General Proposal\
**Created:** [August 17, 2022, 3:50pm UTC](https://forum.balancer.fi/t/bip-43-redeem-treasury-fei-for-usdc/3599 "2022-08-17T15:50:21Z")\
**Posts on this page:** 4\
**Page:** 1

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**Author:** ![Mike\_B](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.balancer.fi/mike_b/32/838_2.png) [@Mike\_B](https://forum.balancer.fi/u/Mike_B)\
**Post date:** [August 17, 2022, 3:50pm UTC](https://forum.balancer.fi/t/bip-43-redeem-treasury-fei-for-usdc/3599/1 "2022-08-17T15:50:21Z")

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# Motivation

There is currently 2,515,349.77 FEI in the treasury that originated from a [treasury swap](https://forum.balancer.fi/t/proposal-treasury-swap-balancer-dao-fei-dao/2254) that occurred in October 2021. Under the original agreement, the DAO was to use these funds for operational expenses. The SP’s passed so far require payment in USDC, so I believe it is a good time to convert the FEI into USDC so that the DAO can use it later on to pay expenses without needing to convert the FEI every time the DAO pays out.

## Specification

1. Balancer DAO multisig **0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f** will approve 2,515,349.77 \* 10^(18) FEI to the **FixedPricePSM** contract at **0x2a188f9eb761f70ecea083ba6c2a40145078dfc2**
2. **0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f** will call the redeem function on the **FixedPricePSM** contract with the following inputs:

- to: 0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f
- amountFeiIn: 2515349770000000000000000
- minAmountOut: 2513349770000000000000000 (2000$ less than amt fei in, let me know if anyone has any concerns with this number)

~~ 
1. **0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f** will approve 2513349770000000000000000 (min amount out above) DAI to be spent by the **Maker: PSM-USDC-A** contract at **0x0A59649758aa4d66E25f08Dd01271e891fe52199**

2. Will call exit on the **PSM-USDC-A** contract with the following inputs:

 
- guy: 0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f
- wad: **2513349770000000000000000**

 ~~

~~ **I would appreciate if someone could independently verify the above process. The transaction will be simulated beforehand regardless to make sure all goes well.**  
 ~~

EDIT: Correction on Step 3 and 4. We actually want to communicate with the [dsspsm contract](https://etherscan.io/address/0x89b78cfa322f6c5de0abceecab66aee45393cc5a#writeContract) 0x89B78CfA322F6C5dE0aBcEecab66Aee45393cC5A

1. **0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f** will approve 2513349770000000000000000 (min amount out above) DAI to be spent by the **DssPSM** contract at \*\* 0x89B78CfA322F6C5dE0aBcEecab66Aee45393cC5A\*\*

2. **0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f** will call **buyGem** on the **DssPSM** contract with the following inputs:

- usr: 0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f
- gemAmt: **2513349770000** [have to account for USDC’s 6 decimals"

The full transaction has been simulated here, thank you @solarcurve for the help.

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<div class="post-metadata">

**Author:** ![zekraken](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.balancer.fi/zekraken/32/823_2.png) [@zekraken](https://forum.balancer.fi/u/zekraken)\
**Post date:** [August 17, 2022, 9:03pm UTC](https://forum.balancer.fi/t/bip-43-redeem-treasury-fei-for-usdc/3599/2 "2022-08-17T21:03:50Z")

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this makes sense since our costs have gone way up since enacting the SP model. As you mentioned the preferred mode of payment is USDC for some of our largest expenses. we still hold our TRIBE in alignment with our past agreement.

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**Author:** ![Bobbay\_StableLab](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.balancer.fi/bobbay_stablelab/32/2180_2.png) [@Bobbay\_StableLab](https://forum.balancer.fi/u/Bobbay_StableLab)\
**Post date:** [August 18, 2022, 9:49am UTC](https://forum.balancer.fi/t/bip-43-redeem-treasury-fei-for-usdc/3599/3 "2022-08-18T09:49:34Z")

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We are in favor of this.

There are no practical differences between using FEI and USDC. As you mentioned, most SPs are requesting funds in USDC, so its ideal to convert it now, rather than in small chunks.

It is a large amount of FEI, too that will relieve some pressure from the treasury instead of it sitting idle.

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**Author:** ![solarcurve](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.balancer.fi/solarcurve/32/1487_2.png) [@solarcurve](https://forum.balancer.fi/u/solarcurve)\
**Post date:** [August 18, 2022, 2:54pm UTC](https://forum.balancer.fi/t/bip-43-redeem-treasury-fei-for-usdc/3599/4 "2022-08-18T14:54:25Z")

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[https://snapshot.org/#/balancer.eth/proposal/0x8c22f7331eca1134f1c7325a55be5cb60e9ebba078812465fe47b88cf4d43808](https://snapshot.org/#/balancer.eth/proposal/0x8c22f7331eca1134f1c7325a55be5cb60e9ebba078812465fe47b88cf4d43808)