The loan section on here is an endless mystery to me.
If you have LTC or whatever alt as collateral, why don't you, er, sell it and not require to pay someone interest? It takes a few seconds on most exchanges.
Why would any lender accept an alt as collateral that could go up in smoke at any moment?
I think there must be a shit ton of unwritten rules that I'm not privy to.
There are no rules about loans, only the ones that the parts agree.
But there are common practices and the trust system.
If you think your altcoin will about to skyrocket and you need BTC now, you can use your alt as collateral and keep most of your profit.