Stablecoin issuance mechanisms vary in their elasticity to handle black swan events. Algorithmic stablecoins, like TerraUSD, often lack sufficient reserves, making them vulnerable to rapid depegging during market shocks, as seen in Terra's 2022 collapse. Fiat-backed stablecoins, such as USDT or USDC, rely on centralized reserves, offering stability if adequately collateralized but risking insolvency if reserves are mismanaged or face regulatory freezes. Over-collateralized models, like DAI, provide more resilience through decentralized assets but can face liquidity crunches in extreme volatility. No mechanism is fully immune to black swan events; elasticity depends on robust collateral, transparent audits, and adaptive governance. Stress tests and circuit breakers can enhance preparedness, but unprecedented shocks may still overwhelm even well-designed systems.