Dynamite is a projectile explosive with a short, 5 second fuse. The fuse can be set off by right clicking, and then thrown once the fuse shortens. However, enemies can also hear this fuse, so make sure that they are unable to run to cover before you light it. If you do manage to land the throw, dynamite deals a staggering 80 damage, which almost alone secures you as the victor of the fight.
Dynamite can be found in holo spawners.