Lending in the blockchain world is similar to normal bank lending.It retains some of its original meaning but adds a little extra.
Cryptocurrency lending implies that one can lend digital assets through crypto exchanges and /or other crypto lending sites and receive with interest.
Just like bank lending,the borrower has of these digital assets had to have a collateral as well such as physical assets like houses, machinery and the likes to be able to qualify for these loans.
Decentralized lending or DeFi lending is fast growing in the blockchain community. It is imperative to note that the collateral used to get these cryptocurrency loans has to be above the value of the loans so as to make up for any decrease in the value of the collateral. So rather than just allowing one's cryptocurrency assets to remain in a wallet and decrease in value, it's much better to loan it to borrowers.
MANTRADAO as a DeFi protocol is introducing lending products in three phases:
Phase I is Open Source Lending Protocol
Phase II is Third Party Lending Service Provider and
Phase III is Own propriety Lending Algorithms
Phase I involves improving on existing open source DeFi lending protocols such like Compound by offering lending interest for Ethereum based assets.
Phase II involves the use of third party lending service providers like industry lenders across multiple block chain and protocols to offer access to high interest saving options and stable loans. This simple interconnection will allow users to a lot of services from one outlet.
In Phase III MANTRADAO provides it's own lending algorithm and stable coin system which will allow various cryptocurrency assets to be used as collateral not just Ethereum-based assets. When a user uses the MANTRADAO OM token derivative OMDOT, he/she gets staking rewards even while taking stable coin loans.
These are the means MANTRADAO is undertaking to redefine lending in the cryptospace.
Source: Mantradao whitepaper.