The main aim of the Makerdao token is to make use of different approaches in order to ensure the stability of the price of DAO token at $1 USD per token. The platform is powered by the Ethereum blockchain and also utilizes the Smart Contract mechanism in order to conduct operations on the platform. Although many people consider the volatility of the crypto market as advantageous, it is still widely considered as a hurdle in general for the cryptocurrency industry. Although there are many other stablecoins in circulation that also promise its users with a stable value of its tokens, but most of them are rife with speculations, lack of transparency, and mistrust. MakerDAO, which was created by Rune Christenson, uses a different approach to stabilize its DAI coin which is similar to fractional-reserve banking which is used by almost every financial institution and organization. Using this mechanism, the MakerDAO uses its proprietary MKR token for stabilizing the DAI coin.

Makerdao is a decentralized autonomous organization that was created on the Ethereum platform. The aim of this platform/ organization is to keep its Dai coin under control by minimizing its price volatility against the US Dollar. While Dai is the brainchild of the Maker organization, its own cryptocurrency, the Maker Token is subject to volatility and its prices increase with an increase in the usage of Dai. the owners of Maker tokens have the ability to vote for the business risk management and business logic of the Maker system. Maker tokens cannot be mined and can be only purchased from certain crypto exchanges that support it.

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Dai is an ERC20 token that is similar to that of the Ethereum cryptocurrency. Dai also allows users to get access to the MakerDAO network that is used for lending and borrowing money. Dai is the result when a loan is taken out of the MakerDAO network. Dao works as a decentralized cryptocurrency network whose value is stabilized against the USD. this means that the value of 1 DAI token will always be equal to 1 USD. In order to ensure that the valuation remains stable through the market changes that occur in both cryptocurrency as well as the stock market, the network utilizes margin trading to keep the price unchanged at all times. The network is entirely dependent on the Ethereum blockchain network and utilizes its Smart Contract mechanism in order to develop itself as a decentralized stable coin that cannot be censored.

In case the platform goes through a black swan event (an unpredictable event that occurs in crypto trading), such as if the price of Ether drops drastically and at a short period of time below the one-to-one collateralization ratio, the MKR coin comes into action. The Maker token is an ERC20 token on the Ethereum blockchain and holds governance rights over the Smart Contracts of the Maker blockchain. The owners of the MKR coin have the ability to vote for critical changes such as the collateralization rate in CDPs. In order to compensate the owners of the MKR coins for regulating the system, they are awarded with fees. Although there is a catch with owning MKR tokens as they also function as a last resort in case the valuation of the DAI coin falls. In such a case, the MKR coin is created and sold on the market in order to raise collateral and maintain the price of the DAI coin. This ensures that the owners of the MKR tokens take responsible decisions while regulating the Maker the blockchain network.

There are many local cryptocurrency exchanges in India that list MakerDAO on their platform and can be acquired using other cryptocurrencies. BuyUcoin is one of the best cryptocurrency exchange platforms that provide users with a wide variety of cryptocurrencies to chose from and offers minimum trading fees to encourage users to benefit from the cryptocurrency market.