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What's to understand? I can get a loan on crypto but I have to put the same amount of crypto as collateral. What is the point of this?

If I go to a bank I can get a loan for a car and use the car I'm purchasing itself as collateral.

That is one product. The benefit is related to growth and related taxation (but might depend on the country you are in).

> The benefit is related to growth

Right... so pure speculation then with no underlying utility.