Where the value Liquidation penalty is came from?

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

Aave Protocol
Aave liquidation

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Aaveator138

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)

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Aave is a decentralized non-custodial liquidity protocol where users can participate as depositors or borrowers.

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