AIP-number: 12
title: Establish the Liquidity Committee (LC)
author: Blockoffice (@Blockoffice), Jelli (@dOrgJelli)
status: Voting
created: 2025-11-27
Simple Summary
This proposal establishes a Liquidity Committee (LC) to manage AITV DAO’s liquidity operations and related third party relationships, including the existing agreement under AIP-2 with Artis.
The LC will be empowered to act quickly, allocate liquidity within DAO-approved limits, oversee performance, and manage exchanges and third party relationships while remaining accountable to the DAO through strict budget caps, transparent reporting, and scheduled reviews.
Motivation
The AITV DAO is entering a phase where liquidity depth, price stability, and exchange presence are mission-critical for ecosystem growth.
AIP-2 established a relationship with Artis as a liquidity service provider, but AITV DAO currently lacks a governance structure that:
- Actively oversees performance,
- Responds quickly to market conditions,
- Negotiates with CEXs and other third parties,
- Allocates treasury resources efficiently and transparently, within risk limits and;
- Adjusts, renews, or replaces service providers without requiring a full DAO vote for every operational change.
Many leading DAOs (Aave, StakeWise, Rocket Pool, Fluence) have adopted and created dedicated small specialist liquidity committees to handle these operational responsibilities.
Creating the LC enables AITV DAO to operate with the same degree of professionalism, responsiveness, speed, and strategic clarity, while maintaining community-driven oversight through defined limits and required reporting.
Specification
1. Establish the Liquidity Committee (LC)
- Committee size: 3 members
- 2 seats for AITV DAO committed contributors
- Jordan Ellis (@dOrgJelli)
- Jure Bogunovic (@nerfzael)
- 1 seat for BlockOffice (dedicated backoffice provider)
- 2 seats for AITV DAO committed contributors
- Term length: 6 months
- Membership: The DAO may remove or replace any LC member at any time via an approved governance proposal.
2. Mandate & Responsibilities
The LC is authorized to:
- Manage third party and LP relationships, including Artis under AIP-2.
- Select, negotiate with, and onboard additional service providers (liquidity programs, CEX/DEX partners, etc).
- Allocate liquidity within the approved budget caps (see below).
- Oversee listings and exchange integrations requiring operational coordination.
- Monitor performance and metrics, and recommend termination or renewal of third party contracts.
- Publish transparent reports (quarterly).
3. Budget & Operational Limits
The DAO authorizes the following limits for the LC:
- Monthly retainer budget: up to $20,000 USDT/USDC (aligned with AIP-2).
- Token or stablecoin loan limit: up to 40 million $AITV and/or 250,000 USDT/USDC for terms up to 6 months.
Loans must: - Be clearly documented (on-chain and/or in signed terms where necessary),
- Include clear return and settlement mechanics (same number of tokens and/or agreed stable equivalent + fees).
Any action exceeding these caps requires a separate AIP.
4. KPIs & Performance Review
The LC must evaluate third party liquidity provider and LP performance against certain metrics such as:
- Bid-ask spread consistently below 5%,
- Depth allowing $1,000 trades with < 2% slippage,
- Liquidity availability across assigned pairs,
- Monthly PnL and fee efficiency,
- New exchange listings or integrations supported.
If a provider fails to meet metrics for two consecutive months, the LC must initiate a review and may adjust or terminate the engagement.
5. Reporting Requirements
The LC must publish Quarterly Reports:
- Budget review
- PnL updates, fees, retainer payments
- Operational decisions made
- Recommendations for upcoming quarter
6. Multisig Structure
A new LC-controlled multisig will manage:
- Token loans to third party liquidity providers
- Payments of retainers
- Deposit/withdrawal of liquidity on DEXs/CEXs
- Operational flows required to execute the mandate
Configuration: 2-of-3 threshold.
7. Relationship to AIP-2 (Artis)
-
The Artis engagement remains in effect under the oversight of the LC.
-
The LC is authorized to:
- manage the operational relationship with Artis,
- adjust deployments within budget caps,
- and evaluate contract performance.
Rationale
Why a Committee?
AITV needs a fast-moving, specialized governance structure to ensure liquidity is managed effectively. Full DAO voting for every adjustment is too slow for operational decisions such as reallocating liquidity, adjusting third party liquidity provider terms, or acting on new exchange opportunities.
Why this design?
- Widely used pattern across top DAOs: Aave (ALC), StakeWise (SLC), Rocket Pool (LC), Fluence (Governance Committee).
- Clear boundaries: Budget caps + time-limited authority keep power in check.
- Transparent: Quarterly reports ensure accountability.
- Professional: Allows AITV DAO to negotiate with exchanges and MMs on equal footing.
Considered Alternatives
- Full DAO oversight — too slow, operationally inefficient.
- Treasury-only oversight — insufficient specialization, less community representation.
- Hiring external managers without committee — lacks governance anchoring.
The LC strikes the right balance: empowered but accountable, fast but transparent.
Transaction Details (if applicable)
If approved, the DAO will execute:
Transaction 1:
Create a multisig wallet for the LC (2-of-3).
Signers: the three selected committee members.
Transaction 2:
Transfer an initial operational buffer of
- $40,000 USDT/USDC, and
- 10 million $AITV,
from the DAO Treasury into the LC multisig, to be used strictly within the budget limits defined in this proposal.
References
AITV DAO Materials
Comparable DAO Structures Consulted
- Fluence DAO – Governance Committee Market-Making Delegation
- StakeWise DAO – StakeWise Liquidity Committee (SLC)
- Rocket Pool DAO – pDAO Liquidity Committee
- Aave DAO – Liquidity Committee (ALC)
These DAOs provided the conceptual and structural precedents for delegating liquidity authority to a specialized sub-group while maintaining DAO-level oversight.
Snapshot Link (after forum phase)