Here is the scenario:
Let's say you are an insurance company and you pool premiums from policyholders in pools of different risk (low, medium, high). Now you want to propose to other people to stake money in order to earn interest. People would choose what type of risk they are willing to take. If there is money left in the pool at the end of the year/term, these investors who staked their money would receive a cut from the pool. Basically, these "investors" would serve as a reinsurer for these pools of premium.
Is that legally possible?