Where the value Liquidation penalty is came from?
- Aave Protocol
- Aave liquidation Aave
Expert
Hi I found this link and want to ask, where the value Liquidation penalty is came from?
Answers 1
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)