# Synthetic Tokens LemmaSwap synthetic tokens are yield bearing ERC20s backed by spot assets and/or long perpetual positions with no leverage. For example, a synthetic ETH (ETH\*) can be backed by a long ETH/USD perpetual futures position and/or spot ETH. There are two ways of minting synthetic tokens: * Deposit a spot asset. LemmaSwap will keep the asset in a collateral pool and mint a corresponding synthetic token. * Deposit USDC. LemmaSwap will use the USDC to go long with no leverage on a user chosen asset’s perpetual market and mint a corresponding synthetic token. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.lemma.finance/concepts-overview/synthetic-tokens.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.