Even I don't know how Poloniex lending works, I see there are many people showing interest towards lending.
Can some on explain to me how this lending works in Poloniex, is it safe to lend money in Poloniex exchange?
you have a margin trading tab and on that tab someone puts money into to show credit
and then they can take a loan off the lending pages for over what his value is on the margin tab
this person is taking on a loan for highs and lows on whatever coin this person is trying to flip for a profit
even if the person defaults on this loan the money tied up in the margin loan this person cannot get back once its in its in
the only way lending money on poloniex would hurt you is two ways
when the fork happens and bitcoin U takes over and when it does the BTC you have in lending wont get duped into BTU because you dont "own" the btc anymore the margin trader does
if the site gets "hacked" and they lose their btc holdings
this isnt step by step on how it works but a short bad summary of how it goes down with lending and loses