Before revision:  We demonstrate fundamental results about dynamics and liquidity in stablecoin markets, demonstrate that these markets face deleveraging spirals that cause illiquidity during crises  , and show that these stablecoins have `stable ' and `unstable' domains.
After revision:  We demonstrate fundamental results about dynamics and liquidity in stablecoin markets, demonstrate that these markets face deleveraging spirals that cause illiquidity during crises and exacerbate collateral drawdown, and characterize stable dynamics of the system under particular conditions. From these insights , and show that these stablecoins have `stable ' and `unstable' domains.