When you launch a token on a decentralized exchange like Uniswap, Sushiswap, etc. you need to deposit an equal amount of ETH and the token you are launching.

The initial value of the token is the amount of ETH divided by the number of tokens you are launching divided.

A successful token launch requires money to be spent on development, marketing, community building, as well as the ETH to deposit into the decentralized exchange to launch the token.

Like most startups in any business, people launching tokens often do not have all the capital they need to do all the things they want to do to make their token launch successful.

So X7 has a Decentralized exchange called Xchange which allows them to lend you ETH by depositing it against the tokens you are launching so you do not have to. But the trick is, only X7 can withdraw the ETH so if you default they can easily get their ETH back.

Most of the tokens being launched have a transaction tax that builds up reserves over time to allow the X7 loan to be repaid.

It is a very specific lending case meeting a very specific need for people launching tokens, but if successful will I can see it expanding to meet other needs.