isCachable is an obsolete equivalent of IMMUTABLE; it's still accepted for backwards-compatibility reasons.However, it describes the attributes as:
IMMUTABLE indicates that the function always returns the same result when given the same argument values; that is, it does not do database lookups or otherwise use information not directly present in its parameter list. If this option is given, any call of the function with all-constant arguments can be immediately replaced with the function value.and it sounds like we should really be using stable for most things. It's not really clear to me if we will get in trouble on 7.3 with iscachable or not but it's something to look out for.
STABLE indicates that within a single table scan the function will consistently return the same result for the same argument values, but that its result could change across SQL statements. This is the appropriate selection for functions whose results depend on database lookups, parameter variables (such as the current time zone), etc. Also note that the CURRENT_TIMESTAMP family of functions qualify as stable, since their values do not change within a transaction.
VOLATILE indicates that the function value can change even within a single table scan, so no optimizations can be made. Relatively few database functions are volatile in this sense; some examples are random(), currval(), timeofday(). Note that any function that has side-effects must be classified volatile, even if its result is quite predictable, to prevent calls from being optimized away; an example is setval().