How exactly does "Lend at Hodl Hod" work?

Question

I've read though this carefully: https://lend.hodlhodl.com/faq/basics

It is extremely confusing.

It seems as if, to borrow 1000 USDT or whatever, I have to first register an account (e-mail address on centralized website required in spite of claims of "true P2P trading"...), then send the Bitcoin amount corresponding to 1000 USDT + the interest from the lender and the "Lend at Hodl Hod" (should I be worried that sometimes it's called "Hodl" and sometimes "Hod"?) fees, and if I haven't paid it back (how?) before a certain date, they automatically get what I sent in.

But how exactly do I pay it back? If I can paid it back that quickly, why would I be borrowing in the first place? It doesn't seem like my deposited Bitcoins "appreciate" at all in value -- it's me who has to pay money?

I was linked to this service when asking about how to "live off of" my Bitcoin without spending them, but this seems like I'm the one who has to pay -- not receive "free money"?

I'm very confused about this. Everything about it seems very fishy, from the typos to the fuzzy explanations of how exactly this is supposed to work and how exactly I'm supposed to pay back the "loan".

Answer 1

It seems as if, to borrow 1000 USDT or whatever, I have to first register an account (e-mail address on centralized website required in spite of claims of "true P2P trading")

Trading is P2P as HodlHodl is just providing a platform, making profits from fees and resolving disputes. You need to register with email address right now, maybe it can be improved by adding an option to register/login using LN node/wallet if LN is used on the website in future similar to https://lnmarkets.com

then send the Bitcoin amount corresponding to 1000 USDT + the interest from the lender and the "Lend at Hodl Hod" fees, and if I haven't paid it back (how?) before a certain date, they automatically get what I sent in.

You need to use 'bitcoin' as collateral for the loan and amount depends on LTV for the offer and amount of stablecoin you want to borrow. This is locked in a 2 of 3 multisig and you own 1 key for it. Other keys are with peer who is lending and HodlHodl. LTV may vary from 30% to 70% and you can create your own offer if you don't find anything interesting.

But how exactly do I pay it back? If I can paid it back that quickly, why would I be borrowing in the first place? It doesn't seem like my deposited Bitcoins "appreciate" at all in value -- it's me who has to pay money?

Contract period is decided when you create or accept the offer. You can watch this video and try things on testnet for better understanding: https://youtu.be/tMXBdEjTiZ4

I was linked to this service when asking about how to "live off of" my Bitcoin without spending them, but this seems like I'm the one who has to pay -- not receive "free money"?

There is no free money. You use 'bitcoin' as collateral to get loan in stablecoins. Lending L-BTC is also possible now on HodlHodl.

I'm very confused about this. Everything about it seems very fishy, from the typos to the fuzzy explanations of how exactly this is supposed to work and how exactly I'm supposed to pay back the "loan".

There is nothing fishy. You can also read this medium post: https://medium.com/hodl-hodl/convert-your-savings-to-stablecoins-and-earn-attractive-returns-by-lending-52cba4f7b2f7 or reach out to HodlHodl support for help or better understanding.