What's a fair rate for this?
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Why would it if the amount lent is in escrow? Do you mean it depends on who is holding the escrow?
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I think the theory here is that the money isn't quite in escrow--that it's being used as collateral on another platform or something like that. Otherwise they could just send it to their account on the first exchange!
"but don't want to have balances there / want to obfuscate"
IIUC this would decrease counterparty risk / give the element of surprise to the borrower. With leverage, it'd be hard for the escrower to liq the borrower, so they'd have the full amount in escrow.
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