A few questions about lending/LP/staking

There is so much happening in the ethereum ecosystem that I don’t know what to do with my ETH. All these LP’s with $1B+ invested and crazy (20+% is crazy in my mind) returns seem too good to be true.

I was wondering if anyone could help answer some questions I have and provide suggestions as to what I should do with my ETH. I don’t plan on selling any time soon, that’s for sure.

Questions:

1- Is lending cryptos the same as adding liquidity to a LP? Or are LP’s only for crypto pairs, and not simply, say, lending DAI or UNI?

2- Why is it that if I go to lend DAI on Coinbase Wallet, I can get a return of 6.6% APR, but if I go on Zapper.fi, and look at the DAI/ETH pair, there is a 31.27% 1Y return?

2.5- Say on the SUSHI / ETH LP on Zapper.fi, why don’t I have to buy Sushi to provide liquidity? I tested out a DAI / ETH pool last october, and had to provide 50/50 DAI/Eth to join the pool.

3- I have a substantial amount of Eth (less than 16) currently sitting idly. Should I wait until I can stake it, or is it worth it to “invest” it in a moderately safe option? More generally, what will you guys prioritize between DeFi and staking?

4- Can Eth be staked while being in a hardware wallet?