A lending mechanism would allow Syrup stakers to borrow money using Syrup as collateral. The borrower would pay interest on this which would be paid out to other Syrup stakers.
If the Syrup collateral goes below a certain price, the borrower would be liquidated. A portion of the liquidated collateral would be burned, contributing to the deflationary mechanisms PancakeSwap is offering.
Lending collateral could also be extended to other crypto-assets such as BNB. However, Cake/Syrup should always be a necessary component of lending to promote the use of the token.