Peg mechanisms, depegs, run risk, redemption and reserve design.
| Paper | Venue | Year |
|---|---|---|
| Stablecoins and Fragility in Fixed Exchange Rate Regimes A global-games model of how dollar stablecoins affect parallel FX markets under fixed or managed exchange rates: stablecoins both widen access to foreign currency and create a common public price that can coordinate runs, so their welfare effect is state-dependent — beneficial when misalignment is low, destabilizing when it is high. | IMF Working Paper WP/26/144, Western Hemisphere Department | 2026 |
| What Keeps Stablecoins Stable? Empirical study of the arbitrage mechanism that holds fiat-backed stablecoins near their peg. | Journal of International Money and Finance (NBER WP 27136) Top-tier journal | 2023 |
| A Luna-tic Stablecoin Crash Post-mortem of the May 2022 Terra/UST algorithmic-stablecoin collapse. | NBER Working Paper 30256 | 2022 |
| Can Stablecoins Be Stable? Theoretical analysis of whether fiat-backed stablecoins can remain stable without deposit insurance or a lender of last resort. | Working paper (Becker Friedman Institute / SSRN) | 2022 |
| Leverage and Stablecoin Pegs Analyses how leverage and secondary-market liquidity determine whether a stablecoin holds its peg. | NBER Working Paper 30796 | 2022 |
| Stablecoins as a tool to mitigate the downside risk of cryptocurrency portfolios This paper empirically assessed the ability of three stablecoins to mitigate the downside risk of a traditional cryptocurrency portfolio. The findings indicated that dollar-backed stablecoins are particularly suitable as a hedge for crypto investors. | The North American Journal of Economics and Finance | 2022 |
| Is Bitcoin Really Untethered? A high-profile empirical study associating Tether (USDT) issuance with support of Bitcoin prices during the 2017 run-up. | The Journal of Finance, Vol. 75(4) Top-tier journal | 2020 |