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Aaveator 5C2C49BE-0B07-4C3F-8D36-B1FB2C7ACC0C Created with sketchtool. 113 Stranger 3 Jan 29 2023 16:17

Where the value Liquidation penalty is came from?

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Hi I found this [link](https://app.aave.com/reserve-overview/?underlyingAsset=0xb97ef9ef8734c71904d8002f8b6bc66dd9c48a6e&marketName=proto_avalanche_v3) and want to ask, where the value Liquidation penalty is came from?

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Aaveator 5C2C49BE-0B07-4C3F-8D36-B1FB2C7ACC0C Created with sketchtool. 113 Stranger 3 Feb 2 2023 16:20

`liquidationPenalty `is configured on the Pool contract for each asset: [check docs](https://docs.aave.com/developers/core-contracts/pool#getconfiguration) 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)