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Aaveator 5C2C49BE-0B07-4C3F-8D36-B1FB2C7ACC0C Created with sketchtool. 138 Stranger 3 Jan 29 2023 16:17

Where the value Liquidation penalty is came from?

  • Aave Protocol
  • Aave liquidation
    • Aave
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Hi I found this link and want to ask, where the value Liquidation penalty is came from?

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undefined 5C2C49BE-0B07-4C3F-8D36-B1FB2C7ACC0C Created with sketchtool. 0 Stranger 0 Feb 2 2023 16:20

liquidationPenalty is configured on the Pool contract for each asset: check docs and can be updated by Aave Governance. Each asset also has an InterestRateStrategy contract which defines the function for supply and borrow rates based on the utilization rate (% borrowed)