Database entity templates?

Is there an easy way to set up a template for new items added to a database? I saw something about setting that up through an automation. Is that correct?

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Yes, you do this with Automations (or Buttons) on the Database. Choose the trigger, e.g. On Entity Creation, then Overwrite Field and choose your field(s) and value(s), including Markdown for Rich Text fields. There is syntax for constructing internal Fibery Links to Entities as well (non-standard Markdown).