Aave V4 · Reads onchain state
Reads the most a liquidator can earn seizing an Aave V4 reserve as collateral, and the auction that decides how much of it they get. The bonus in V4 is not fixed. The reserve's current dynamic config carries a maximum bonus, returned here in basis points above par, and a liquidation fee that takes a cut of whatever bonus is paid. The spoke's liquidation config sets the auction around it: below the health factor for maximum bonus the whole bonus is paid, at a health factor of one only the floor set by the bonus factor is, and between them it widens linearly, while every liquidation only repays enough to bring the position back to the target health factor. Reach for it when weighing collateral choices, since a higher maximum bonus is a larger haircut if a position is ever liquidated, or in a liquidation strategy to compute the expected bonus at a borrower's current health factor before committing capital.
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