The main use is exploiting smart contracts. Not just in the "bug" sense, but if e.g. there's a decentralized exchange and many people unwisely set a resting sto

The main use is exploiting smart contracts. Not just in the "bug" sense, but if e.g. there's a decentralized exchange and many people unwisely set a resting stop order to sell to "reduce risk", you can clear out the order book popping everyone's stops to trigger a cascade and then buyback at firesale prices. Another common use for cryptocurrency loans is speculating on other cryptocurrencies or borrowing a lot for a short-term pump & dump. There's smart contracts that will let you borrow at 20% interest leaving the balances of both known, and they'll margin-call you if the trade goes too far against you. There's no use for these loans outside of cryptocurrency-land: If you buy e.g. an apartment complex, that asset cannot be used as collateral for a cryptocurrency loan and you can't get millions of dollars for cheap like you can a conventional or government loan.