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+---
+title: Update the Liquidation Bonus of AAVE in Aave Ethereum V2 Market
+author: Author's Name (@GitHubUsername)
+shortDescription: Update LB of AAVE in V2
+discussions: <governance forum thread>
+created: 2021-09-07
+---
+
+## Simple Summary
+
+A proposal to increase the Liquidation Bonus of AAVE in V2 Market.
+
+## Abstract
+
+Recent investigations highlighted the importance of optimizing liquidation bonuses. The current Liquidation Bonus of AAVE reserve is misaligned with the liquidation bonuses of others reserves.
+
+## Motivation
+
+The current liquidation bonus of AAVE drives to multiple issues. The change of the parameter will help to prevent and avoid future problems of the system related to this reserve.
+
+## Specification
+
+- Current Liquidation Bonus of AAVE: 8%
+- Recommended Liquidation Bonus Update of AAVE: 10%
+
+## Implementation
+
+The proposal sets the liquidation bonus by calling `configureReserveAsCollateral` on the `PoolConfigurator` contract at `0x311Bb771e4F8952E6Da169b425E7e92d6Ac45756`, using the address and parameters specific to `AAVE` token.
+
+## Copyright
+
+Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).