Every Cryptocurrency is risky but it gives high profit too. Until this time I never had lended my crypto but rather I have invested on some smart contract project. If you want to lend your crypto then you have to bear risk as well. But From my friends I have heard that "Blockfi" is a good site for investement and they never had loss. So I prefer investment on Block fi is good
Both parties I guess in risk if you are in a business of crypto lending. The only thing solution is to provide collateral with high potential value more than what you have borrowed. If you have plan a business like this don't think to cash out ever, because when there is bull run or downtrend of course that price will matter on that movement.
If you are long term holder of crypto, lending business is good for you. But first, make sure the borrowers should have this collateral for your won safety.
I never tried Blockfi, I only heard them.