I suspect loaning them to yourself-on-some-service as collateral might be the new "thing" to take its place;
that is, instead of loaning your bitcoins, using them as collateral to borrow other things.
That way you need not lose out on the gains in value your bitcoins make while "using" them to invest in other things.
-MarkM-
Sure. Someone could setup a service where you deposit bitcoins and can receive USD or other funny money and pay "normal" interest rates on that. Much better than trying to borrow bitcoins at insane rates plus if they default you have their bitcoins
The lending segment isn't completely dead, but there is a group of people that have tried their best to kill it off because their opinion is everyone is dishonest. I know a couple of people still doing lending, and I still get requests to finance various things.
(and seeing this post explains the question about BTC/USD collateral I've just sent a reply to. In essence, if someone wants to deal in a real currency, make sure you have the right financial licenses/structure/compliance because that is an area where regulations do apply.)
Here are 2 reasons its collapsed -
Many of the depositors lied about insurance.
Most of them have defaulted, the latest being Kluge.
You cant call people trolls if they ask the remaining services if they can cover their obligations or not.