> For the complete documentation index, see [llms.txt](https://docs.untitledbank.co/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.untitledbank.co/core-concept/markets/layered-market-structure.md).

# Layered Market Structure

Untitled Bank's **Layered Market Structure** revolutionizes modular lending by solving the critical challenge of liquidity fragmentation. In traditional modular lending protocols, the coexistence of multiple markets with identical collateral-loan pairs leads to scattered liquidity and market inefficiencies. Our innovative approach combines the flexibility of modular lending with the efficiency of monolithic systems through our **Core Market** feature.

#### **Core Market Solution** 

Our **Core Market** feature aggregates markets with identical collateral-loan asset pairs, creating a unified lending experience:

<figure><img src="/files/4pWLKSJC6qa2iYLwKg3b" alt=""><figcaption><p>Collateralizing and Borrowing experience for different user types</p></figcaption></figure>

* **Smart Market Whitelisting**: Through DAO governance, markets are carefully vetted and whitelisted to join the Core Market ecosystem.
* **Optimal Order Distribution**: The platform intelligently routes borrow orders across whitelisted markets, maximizing efficiency and stabilizing rates.
* **Unified Liquidity**: Users access a single, aggregated liquidity pool for each asset pair, simplifying the lending experience while maintaining the benefits of modular design.

#### **Key Advantages**&#x20;

The Layered Market Structure delivers significant benefits to all participants:

* **Seamless User Experience**: Access to aggregated liquidity through a single interface eliminates the complexity of comparing multiple markets.
* **Maximum Capital Efficiency**: Unified liquidity pools ensure optimal utilization rates and stable interest rates across the platform.
* **Community-Driven Growth**: DAO governance of market whitelisting promotes quality control and active community participation in platform development.

Through this innovative architecture, Untitled Bank creates a lending platform that combines the customization of modular design with the efficiency of unified liquidity pools, setting a new standard for DeFi lending.