Investors or lenders don't fear the volatility. What they fear most is the security of the platform where they have invested their money.
Someone who invests in defi or lending platform understands the volatility of cryptocurrencies as from the beginning it has always been. But whether there will be a help or none from any other projects, Ethereum won't surpass bitcoin.
It will remain as the number one crypto.
You are right financial security is the main factor that I first of all considered in the project. You don’t send your financial asset (Ethereum) to anyone in the project, but keep it at your address in a smart contract, thus you don’t fear that someone can steal it or nullify the equivalent of your financial asset, you can mortgage and receive its full value or sell, and your asset will remain locked in a smart contract at your address.
It's about the platform itself. The Ethereum chain is there and will always be there if your token was made on their network.
What people who don't have enough knowledge about security is that they won't be fearful of the potential hacking of the platform where they have deposited their Ethereum or any crypto assets that it requires for you to be invested to their DeFi.
To me, it's the most important factor, security.