Important to note that you can only borrow it with greater value of collateral (in the form of other crypto assets). If you want to borrow $100m USDC, you need

Important to note that you can only borrow it with greater value of collateral (in the form of other crypto assets). If you want to borrow $100m USDC, you need to post $100m of something else (e.g. BTC), which can then be liquidated if the value changes. There is definitely a case for this (financial speculation, aka shorting one asset by borrowing and selling it), but I think the largest "legitimate" (not tied to hacking, or ransomware) case that's also not speculative (shorting or decentralized leveraging) is simply to avoid a big tax bill. In other words if you bought a few thousand BTC 10 years ago and never sold, you don't have to pay capital gains in many jurisdictions if you just use it as collateral to borrow USDC. Personally I'd be happy to pay taxes on a massive windfall like that (and also wouldn't want to hold BTC long-term due to the environmental effects) But there are (unfortunately, in my opinion) a lot of anti-government, sovereign citizens, and libertarian types in the crypto space as well.