Robinhood stock lending

I’m eligible for stock lending on Robinhood. This is my play money account but it’s over $100k now. Any thoughts on risk for this? From the research I’ve done you are basically loaning to short sellers who give you a fee and use your voting rights. Some risk they could not repay you in a massive short squeeze but this seems unlikely as I don’t own meme stocks. My main concern was if your shares aren’t returned prior to a dividend it seems like you could be taxed at a regular tax rate.

Any body on the board doing this and what are your experiences?

For what, like 1 percent/year? Better ways to make money.

1 month Treasuries are earning 2.15% with no risk. 3% if you go 6 months.

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Yes, it's a no brainer to loan out stocks you plan to hold and there's no difference in your ability to trade them, you can still sell them like normal. I've made around $70k lending stocks since early 2020 but lately it's dried up because there's not as much shorting going on with the market being down.

I don't know about dividend tax implications but the main risk is that you can lose your shares if your brokerage goes bankrupt however unlikely that may be.

I've never had dividend stocks loaned out but it looks like if your dividend stock is loaned on the ex-dividend date you get what are called cash in lieu payments that's probably taxed as ordinary income. I'd say ask a tax pro to be sure but it may be tough to find one with expertise, my CPA knows nothing about fully paid lending programs.

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