It's kind of weird to me the people saying if you lend on Poloniex you need 3x collatoral.
It doesn't work like that on Polo/bitfinex, you lend funds which people use to open margin trades (a trade that is separate from an exchange trade, it can only be opened or closed, you can't withdraw the funds involved in this trade until the trade is closed and the loaned btc for margin trading has moved back to the lender). Your trust is not in the actual trader/user but instead in the exchanges lending liquidation system & security practices.
I'm not going to lie, if I was going to lend I'd do it on an exchange. It's much different than loaning to rando's on the forum.
Loaning to randos on the forum = suicide
loaning to unregulated exchange users and trusting the exchange with your money = self mutilation (you must enjoy pain to proceed)
Either way you'll never see me participating
![Tongue](https://bitcointalk.org/Smileys/default/tongue.gif)
I don't care how good the interest is.
The risk to reward doesn't make sense...Typical btc loan is about 0.05% to 0.1% a day, during bubbles like now it tends to go higher (currently @ 0.08%. Let's just make it simple and go with 0.1% a year annualized, which is around 36.5% profit a year if you don't miss a single day).
Is it worth it to you to risk 1 btc with a decent probability of losing it within 1 year to exchange risk (shuts down, exit scam, hack, personal account hacked etc etc) for 0.365 btc at the end?
For me, it's not. Everyone is different though.
PS - yes 36.5% is a dreamy return in the traditional market. You don't have to take insane amounts of risk to receive interest in a traditional market, in fact most bonds are federally insured meaning the risk is basically non-existant unless you feel the government is about to fail. So comparing government/corporate issued bonds/stocks to a unregulated altcoin exchange is a mute point. Their profiles are completely different.
If your exchange fails, you will be stuck making claims in courts and by the time it all comes together the owner of said exchange will be livin the life sippin' martini's and snorting coke in Belize with 3 hookers around them, all on your dime.