Can Stablecoins Be Stable?

Adrien d'Avernas, Vincent Maurin, Quentin Vandeweyer · Working paper (Becker Friedman Institute / SSRN) · SSRN

Theoretical analysis of whether fiat-backed stablecoins can remain stable without deposit insurance or a lender of last resort.

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Relevance to stablecoin measurement

Theory pairing with our peg-stability data and run-risk discussion.

Key findings

Stablecoins are exposed to runs absent a backstop; par stability is not guaranteed by full reserves alone.
Explores conditions (fees, redemption design) under which a peg can survive stress.

Indexed under

Peg Stability & Runs Design & Economics

Related Stablecoin Beat data

Peg Stability

Cite this

Adrien d'Avernas, Vincent Maurin, Quentin Vandeweyer (2022). Can Stablecoins Be Stable? Working paper (Becker Friedman Institute / SSRN).

BibTeX

@techreport{davernas2022canstablecoinsbestable,
  title = {Can Stablecoins Be Stable?},
  author = {Adrien d'Avernas and Vincent Maurin and Quentin Vandeweyer},
  year = {2022},
  institution = {SSRN},
  howpublished = {Working paper (Becker Friedman Institute / SSRN)},
  url = {https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4155351},
  note = {Indexed by Stablecoin Beat},
}

Last verified 2026-07-02. 1 of the 10 fields shown is recorded but not yet verified and is marked below; 10 further tracked fields are not recorded.

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