# Proposal for Liquidation Protection Mechanisms in World App Integration

**URL:** https://forum.morpho.org/t/proposal-for-liquidation-protection-mechanisms-in-world-app-integration/2051
**Category:** Governance
**Created:** [October 13, 2025, 6:55pm UTC](https://forum.morpho.org/t/proposal-for-liquidation-protection-mechanisms-in-world-app-integration/2051 "2025-10-13T18:55:43Z")
**Posts on this page:** 2
**Page:** 1

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### Author: ![myoshida2](https://avatars.discourse-cdn.com/v4/letter/m/9de053/32.png) [@myoshida2](https://forum.morpho.org/u/myoshida2)
#### Post date: [October 13, 2025, 6:55pm UTC](https://forum.morpho.org/t/proposal-for-liquidation-protection-mechanisms-in-world-app-integration/2051/1 "2025-10-13T18:55:43Z")

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I’m a Morpho user via World App. I was liquidated during the market crash on 10/11 and would like to propose technical improvements.

【Current Challenges】

- World App integration only supports manual management with no external automation tool connectivity
- Human reaction time is insufficient for volatile collateral assets (e.g., WLD)
- 24/7 monitoring is impractical considering global user time zones

【Technical Proposals】  
Features implementable at the Morpho protocol level:

1. **Conditional Order Functionality**

2. **Gradual Liquidation Implementation**

3. **World App Integration-Specific API**

【Reference Examples】

- Aave V3’s EMode and Isolation Mode safety features
- Liquity’s gradual liquidation mechanism

More user-friendly liquidation protection for mainstream app integrations like World App would further drive Morpho adoption.

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### Author: ![wanisili](https://avatars.discourse-cdn.com/v4/letter/w/898d66/32.png) [@wanisili](https://forum.morpho.org/u/wanisili)
#### Post date: [October 21, 2025, 1:55pm UTC](https://forum.morpho.org/t/proposal-for-liquidation-protection-mechanisms-in-world-app-integration/2051/2 "2025-10-21T13:55:56Z")

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Good suggestion. At that time, the WLD price dropped by 80% within just a few minutes, making it impossible to react even if one was online at the time. For the USDC/WLD pair, liquidation occurs when the ratio reaches 77%, so I believe almost everyone who used the borrow feature was liquidated. I think such an unreasonable situation created victims rather than reflecting users’ carelessness. While I don’t have high expectations, I believe proper compensation should be provided to the affected users. I heard that Binance has already offered compensation for the victims of the incident. Who receives the liquidated WLD — Morpho or Re7 Lab? I hope the entity that recovered the liquidated WLD returns it to the affected users.
