diff --git a/TASKS.md b/TASKS.md
index e1c0a09..1fc8437 100644
--- a/TASKS.md
+++ b/TASKS.md
@@ -16,18 +16,19 @@ This file tracks all active development tasks. It is based on the official `DEVE
 * **Goal:** Get the basic API, database, and Twitch login flow working.
 
 ### To Do
-* `[ ]` **1.1: Database Schema:** Define SQLAlchemy models for `User` (id, username, platform, encrypted_tokens) and `Settings`.
-* `[ ]` **1.2: Twitch OAuth API:** Create FastAPI endpoints for `/login/twitch` (redirect) and `/auth/twitch/callback` (handles token exchange).
+
 * `[ ]` **1.3: Secure Token Storage:** Implement helper functions to `encrypt` and `decrypt` OAuth tokens before storing them in the database.
 * `[ ]` **1.4: Basic Session Management:** Create a simple session/JWT system to know *who* is logged in.
 * `[ ]` **1.5: Login Frontend:** Create a basic `login.html` file with a "Login with Twitch" button.
 
 ### In Progress
-* `[ ]` **1.0: Project Skeleton** - @ramforth
-    * *Task:* Setup `main.py`, `requirements.txt`, and `.gitignore`.
+* `[ ]` **1.1: Database Schema:** Define SQLAlchemy models for `User` (id, username, platform, encrypted_tokens) and `Settings`. @ramforth
+* `[ ]` **1.2: Twitch OAuth API:** Create FastAPI endpoints for `/login/twitch` (redirect) and `/auth/twitch/callback` (handles token exchange).@ramforth
+
 
 ### Done
-* *(Nothing yet!)*
+* `[ ]` **1.0: Project Skeleton** - @ramforth
+    * *Task:* Setup `main.py`, `requirements.txt`, and `.gitignore`.
 
 ---
 
diff --git a/database.py b/database.py
new file mode 100644
index 0000000..2924262
--- /dev/null
+++ b/database.py
@@ -0,0 +1,19 @@
+from sqlalchemy import create_engine
+from sqlalchemy.ext.declarative import declarative_base
+from sqlalchemy.orm import sessionmaker
+
+# Define the location of our SQLite database file.
+# The ./. indicates it will be in the same directory as our project.
+SQLALCHEMY_DATABASE_URL = "sqlite:///./multichat_overlay.db"
+
+# Create the SQLAlchemy engine. The `connect_args` is needed only for SQLite
+# to allow it to be used by multiple threads, which FastAPI does.
+engine = create_engine(
+    SQLALCHEMY_DATABASE_URL, connect_args={"check_same_thread": False}
+)
+
+# Each instance of SessionLocal will be a database session.
+SessionLocal = sessionmaker(autocommit=False, autoflush=False, bind=engine)
+
+# This Base will be used by our model classes to inherit from.
+Base = declarative_base()
\ No newline at end of file
diff --git a/models.py b/models.py
new file mode 100644
index 0000000..7a1923d
--- /dev/null
+++ b/models.py
@@ -0,0 +1,27 @@
+from sqlalchemy import Column, Integer, String, Text, ForeignKey
+from sqlalchemy.orm import relationship
+
+from .database import Base
+
+class User(Base):
+    __tablename__ = "users"
+
+    id = Column(Integer, primary_key=True, index=True)
+    # The user's unique ID from the platform (e.g., Twitch ID, YouTube Channel ID)
+    platform_user_id = Column(String, unique=True, index=True, nullable=False)
+    username = Column(String, index=True, nullable=False)
+    platform = Column(String, nullable=False) # e.g., "twitch", "youtube"
+    
+    # A JSON string or other format holding the encrypted access and refresh tokens
+    encrypted_tokens = Column(Text, nullable=False)
+
+    settings = relationship("Setting", back_populates="owner", uselist=False)
+
+class Setting(Base):
+    __tablename__ = "settings"
+
+    id = Column(Integer, primary_key=True, index=True)
+    custom_css = Column(Text, nullable=True)
+    user_id = Column(Integer, ForeignKey("users.id"))
+
+    owner = relationship("User", back_populates="settings")
\ No newline at end of file
diff --git a/requirements.txt b/requirements.txt
index ed98526..17071cd 100644
--- a/requirements.txt
+++ b/requirements.txt
@@ -1,4 +1,5 @@
 fastapi
 uvicorn[standard]
 sqlalchemy
-httpx
\ No newline at end of file
+httpx
+cryptography
\ No newline at end of file