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I want to write a contract that buys back an ERC20 Token using USDC. (in REMIX IDE)

I want to understand what is the best practice for paying out the USDC in return for the ERC20 that was sold to the contract.

Right now, I am calling a

usdcAddress.transferFrom(address(buyer), msg.sender, price);

It just dawned on me that I need to the buyer wallet address to call approve() before I can call the transferFrom() which is something I cannot do in production. Only the msg.sender will be able to call approve via the web3.

I am thinking of just sending this contract of mine USDC, so the payout will come directly from the contract, instead of a separate wallet, and will enable me to just call transfer() with msg.sender being my buyer contract. Will this work? Is this a good approach? Can a smart contract hold/own USDC(or other tokens) ?

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Contract can hold an ERC20 token, since "holding" is just a record in the ERC20 contract that states which address owns what. It doesn't care if the address is a contract or a wallet.

But.. a contract can't initiate a transaction on its own. The buyback will have to be fired from someone with the private key of that address, can be a backend or MetaMask.

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  • Thanks for that, does that mean I can just transfer USDC to the contract. And I can just trigger the transfer() call inside the function that buys the token?
    – momoja
    May 10, 2022 at 6:44
  • Yes, but you better learn the whole process of working with contracts before writing something yourself.
    – Kof
    May 10, 2022 at 10:48

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