Before revision:  Based on our results, we suggest design improvements that can improve long-term stability and suggest methods for solving pricing problems that arise in existing stablecoins. In addition to the direct risk of instability, our dynamics results suggest a profitable economic attack during extreme events that can induce volatility in the `stable' asset .
After revision:  Based on our results, we suggest design improvements that can improve long-term stability . We also introduce new attacks that exploit arbitrage-like opportunities around stablecoin liquidations. Using our model, we demonstrate that these can be profitable. These attacks may induce volatility in the `stable' asset .