You need a short term loan of $100 for something but you do not wanna sell off your HIVE because you think the price will increase in the short term. You use your HIVE as collateral for a $100 loan. Now you have the $100 you needed and you still own your HIVE. When you pay the loan back, you get your collateral back.

That would be the jest of it. It's a standard model for crypto lending used by platforms like Nexo, crypto.com, Celsuis, etc. I'm trying to introduce it to HIVE 😃