Loki gave Odin the horse in hopes that Odin would like him more than Thor. This was after Loki transformed himself into a female horse, got pregnant, and gave birth to said eight-legged horse.
Loki needed to distract the stallion from working so his job wouldn't be finished in time. What better way to distract a male than to entice him with your feminine wiles, even if you have to give birth afterwards?
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