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Silicon Valley bets on crypto projects to disrupt finance

Wave of ‘DeFi’ projects aim to reinvent exchanges, insurance, lending and more

Uniswap is not even three years old, but it has already turned millions of dollars into billions for venture capitalists who bet on a new kind of cryptocurrency exchange.

Instead of acting as a traditional broker, Uniswap is an automated software program that allows users to trade cryptocurrencies directly with each other, without any intermediary.

Last year venture capitalists who had invested a total of $12.8m in the company behind the project received a sweetener: Uniswap began distributing 1bn digital tokens to users, giving investors 18 per cent of the total.

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