This actually breaks down into three questions/clarifications - all of which are independent of each other.
Firstly: What type of LAG do I have? Is it single-switch to single switch (or single stack to single stack), so a normal common-or-garden LAG (port channel in Cisco speak). If it is from two switches to a third switch, then it is MLAG.
Then: What hashing algorithm does the sending switch use to decide which port to transmit the frame from? If it is L2, the only the MAC addresses are used; if L3, then the IP addresses are used; if L3_L4 then both IP addresses and TCP/UDP ports are used. It depends on your traffic type to a degree, but you generally won't go far wrong with L3_L4 in any normal environment using routing and a reasonable number of clients. It isn't a problem having different hash algorithms at each end of a link - but you don't normally do it as that wouldn't lead to the best load balancing between them.
Finally, there's the question of LACP. Do I want an active protocol to control whether or not a physical link between two devices can be used to carry traffic as part of the LAG. I am a firm believer in always using LACP as it saves you from some issues with blackholed traffic - however, others think that this introduces too much complexity and that static LAGs are the way to go.
Remember also that it doesn't really matter what you have on the other end - another Extreme switch, a Cisco switch, a Linux host or a VMWare cluster - so long as both ends are aware that there is a LAG, and if LACP is enabled on one end, it must be enabled on the other or you won't get anything going across the links.
Paul.