I was under the impression that EHTlend was promising a crypto to crypto L&B contract. Or probably considering USDT as digital fiat?

The use case you mention is indeed a potential one I didn't consider at first. So its a way to organise an OTC market, however with a larger fee (collateral).
Anyway, such type of initiative will help to understand the limit of the space and have it progressed in the right direction, shouldn't it be fully successful.