# Banks

At Untitled Bank, anyone can create a **Bank** in the form of an [ERC-4626 vault](https://ethereum.org/en/developers/docs/standards/tokens/erc-4626/). Each Bank functions as an independent lending vault, holding a single loan asset and serving specific lending markets within the platform.

Banks are created and managed by **Bank Operators**—which can include individuals, financial institutions, DAOs, or project treasuries. Untitled Bank’s **permissionless** design allows anyone to become a Bank Operator, fostering diverse participation.

The **Layered Bank Structure** ensures that all users, regardless of their DeFi expertise, can participate seamlessly. Untitled Bank combines the advantages of monolithic lending platforms like [AAVE](https://aave.com/) and [Compound](https://compound.finance/) with modular systems like [Morpho](https://morpho.org/) and [Euler](https://www.euler.finance/), introducing a new era of customizable lending.

**Users can:**

* **Earn passive income** by depositing their assets to the Bank
* **Select Core Bank to delegate risk management to the DAO** for a simplified experience.
* **Select Custom Banks** based on personalized risk appetites and strategies.

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#### **Glossary**

* **Bank**: A vault containing an ERC-20 (or [ICrosschainERC20](https://specs.optimism.io/interop/token-bridging.html)) asset, representing a lending market on the platform.
* **Bank Operator**: The creator and owner of the Bank (vault) with full control over its management.