Lending is always not risky if the site is trustworthy. It is not the fact how the valuation is. Because at the same time they are borrower and lender in maximum case. For example: blockchain.com is a lender and borrower. When anyone take loan from them the lender should have to provide collateral.
The problem remains the same though, if you are not controlling the private keys, you are not the rightful owner of the coins. I trust every site and I don't trust any of them depending on the situation. I always check my transaction stats like confirmation,etc on blockchain so ion that sense I trust them but that doesn't enable to me invest my coins under them for interest.
Every individual have their own preference though so I understand as @target said POS is a better option, I don't even agree with that because most of the POS coins lose their worth by the time dividends arrive.
Staking your coins is better than holding it in your bag without getting anything in return, the profits you might get is small but at least you didn't waste your time waiting for the right moment to sell your coin, it's killing two birds in one stone.
Yes, if you hold a coin which can be staked you should do it, but there is a problem of locked funds which means you cannot move your funds in case the market is dropping you are just helpless.