[BIP-129] Swap BAL for USDC using Aave’s Bonding Contract

Motivation

It has been well documented by Xeonus and others that the DAO will run out of stablecoins sometime in Q3/Q4 2023 based on current numbers. While progress has been made to increase revenue it would still be prudent to extend the DAO’s runway sooner than later. An opportunity has emerged to cleanly convert BAL to USDC using Aave’s one way bonding curve contract. This takes BAL and gives out USDC at the chainlink oracle price of BAL/USD + 50bps.

There is ~91.6k BAL left to be filled out of the total 100k BAL. The DAO would gain ~$571k USDC if this swap was made today. You can confirm this number by calling the 7. getAmountOut function on etherscan.

This can effectively be viewed as a treasury swap with Aave DAO, BAL for USDC. This BAL would be used by them to lock in veBAL and vote for Aave boosted pools. Aave is a very important long term partner for Balancer which makes this an appealing option for raising stablecoins.

I recognize this could be a controversial decision but the opportunity to use this bonding curve contract might disappear at any moment so we will need to act quickly if we want to pursue this. Pending how the discussion goes I think we should plan on a December 8th vote.

Specification

If approved, the DAO Multisig 0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f will initiate a transaction with the BAL token contract 0xba100000625a3754423978a60c9317c58a424e3d calling the approve function with the following arguments:

Spender: 0x04f90d449D4f8316eDd6Ef4F963b657f8444a4cA

Amount: The current value from calling 6. amountBalToBeFilled here, which is 91661437022397199910676 at the moment

Next, the DAO Multisig 0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f will initiate a transaction with the bonding curve contract 0x04f90d449D4f8316eDd6Ef4F963b657f8444a4cA calling the purchase function with the following arguments:

amountIn: same value as Amount above, 91661437022397199910676

toUnderlying: true