The Blockchain technology is synonymous with innovation where anything is possible, and Mantra’s NFT lending protocol that allows borrowing of crypto using NFT as collateral can thus be seen as a huge leap ahead and game changer in the NFT market.
What is Mantra
Mantra is a multi-chain peer-peer assets lending and borrowing platform using NFTs as collateral in an order and biding manner.
With the Mantra system, NFT investors could be able to take part in more investment opportunities by using some of their valuable NFTs as collateral to get additional funds on a sustainable basis. Lenders could also earn revenue from the interest returned on the funds they lend out on the platform, thus creating an opportunity for financial profitability for everyone.
The Mantra system is designed to make the borrowing and lending process automated, with the users fully in charge of how the system is utilized. For example, if the platform’s users decide to borrow some funds in any of the chains' tokens, the user needs to prepare a borrowing order against the NFT to be used as collateral, this will include the amount in the asset to be borrowed, then the interest rate, period of borrowing, amount to be returned to the lender.
There are no specific lenders on Mantra, anyone can pick up an order that they like based on the NFT asset used for the collateral and the interest rate involved in the deal. This gives everyone a fair chance to make a profit by being a lender on Mantra. No registration is required, everything is decentralized.
Mantra comes with a feature that enables users to sell NFT in bundles. A great advantage over the traditional NFT marketplace. Instead of going through the process of listing NFTs one after the other and clicking on confirmation repeatedly on Metamask, you can prepare them in a bundle and list them as a sell order with one confirmation on Metamask. This makes the selling and purchase process much simpler and perhaps much cheaper as well.
How to use the Mantra marketplace
Using the Mantra marketplace is similar to other NFT marketplaces except for the lending, borrowing, and bundle orders.
To use the Mantra marketplace follow the following steps :
1. Connect to any of the chains network on your Metamask dapp browser and load the Mantra website link.
2. Select the chain you are using and connect your wallet. Note: Mantra currently supports 3 chains, namely; smartBCH, Dogechain, and Cronos at the time of writing.
3. Go to the menu tab by clicking on the three vertical lines at the top left corner of the page and click on "wallet".
4. When the wallet load up your NFTs, Scroll through the page and click on "add to bundle" at the right bottom of each NFT.
5. After selecting the number of NFTs you want to add to a bundle, go to the top of the page, at the right corner, and click on your cart to open the order page.
6. Fill in the amount you want to borrow, the interest rate, the period of borrowing, and the total amount to be refunded. Send the order to the Mantra order panel, and confirm the transaction in your wallet.
Once a lender sees the order and like the terms of the deal, they can pick it up and complete the deal by sending the amount stated on the deal to the owner, and the NFT is automatically locked up in the Mantra NFT wallet. The entire process of the transaction and locking up of the NFT are automated without human involvement.
After the borrowing period is completed, the NFTs are released for the owner to claim them by paying back the borrowed tokens at the rate outlined in the order.
If the borrower fails to claim the NFT at the end of the borrowing period, it will become the property of the lender who can choose to sell them to the highest bidder and get refunded. Nonetheless, NFTs of a higher value is mostly used for collateral.
Anyone can also list just one NFT or a bundle of NFTs they want to sell for interest on one go in the Mantra marketplace.
Another distinguishing feature on Mantra is the Lending pool. The feature allows lenders to create liquidity pools with their funds, and set the terms of lending in the pools. Anyone who has the specific NFT required to access a lending pool and likes the terms set by the pool owner, can go to the pool, choose the loan amount they needed with their NFTs as collateral. When an NFT is added to the pool, the NFT is locked in the lender pool until the borrower repays the loan taken from the pool. No human intervention or escrow service is required in this process.
If there is enough demand for a certain NFT in the pool and borrowers are unable to fulfill the loan, they can unlock the NFT for the borrower if they are willing to pay the proper interest to the pool owner.
The purpose of Mantra is to enable NFT investors to always have a ready liquidity market where they can obtain funds against their valuable NFT Assets to invest in new projects.
Buying NFT on Mantra
Buying NFT on Mantra is done the same as on other NFT marketplaces. Just follow the steps above and you’ll be able to buy NFTs on Mantra.
Who is developing Mantra?
Mantra is a new platform that focuses on solving the common problem of illiquid in the NFT economy and enabling new use cases by combining all the features of the existing marketplaces, without centralization and with maximum privacy and decentralized control over the transaction system.
Mantra is jointly owned by two strong NFT investors Kiok and Mortip, and they are the main developers of the Mantra project.With the strong track record of Mr. Kiok and Mr. Mortip, Mantra is most likely to grow into a strong community that will prove to be an essential asset for an NFT platform in the future.
For more information please visit the website or join their telegram group.
Website: Mantra’s NFT lending protocol
Telegram: Mantra’s NFT lending protocol
The attached images are screenshots from Mantra platform and telegram group.
Reference links: Mantra Lending protocol and Leoglossary.