I don't know the answer could be a long answer but the simplest version of my opinion would be like this

Lend if you want more money while hodl but it has minimum risk, tho it is considered as a risk. and you need a person to use your money. Default on loans is still a thing and problems like this will never be going away. and most bitcoin lending would be on centralized exchange.

Hodl if you have enough money and can forget the noise of the volatility and the purpose is for really long term not a profit in short term and you dont want to take any risk associated with lending activities