Is this possible? Example you lend bitcoin to something similar to like a bank and they give you interest on it? Like how now they give you 2% interest?
I heard binance is doing something similar like that but it was like 10%?
Too risky in my opinion if they offer a very high interest, then it could fall into something like an HYIP, and there's also a risk of the site running away with your Bitcoin, we have a lending section here you can offer to lend people but only trusted people with collateral, your Bitcoin will grow so why give it to others just kept it in your wallet.
And another thing is what if the value of bitcoin decrease so what will happen to your money it will also decrease its value. He can use fiat instead bitcoin if you want he want to lend money. If he is prefer to lose the value of what he want to lend then he can continue.