# Clarifying cbBTC and USDC incentives

**URL:** <https://governance.aave.com/t/clarifying-cbbtc-and-usdc-incentives/19614>\
**Category:** General\
**Created:** [October 28, 2024, 1:12pm UTC](https://governance.aave.com/t/clarifying-cbbtc-and-usdc-incentives/19614 "2024-10-28T13:12:08Z")\
**Posts on this page:** 1\
**Page:** 1

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**Author:** ![ACI](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/aci/32/4780_2.png) [@ACI](https://governance.aave.com/u/ACI)\
**Post date:** [October 28, 2024, 1:12pm UTC](https://governance.aave.com/t/clarifying-cbbtc-and-usdc-incentives/19614/1 "2024-10-28T13:12:08Z")

</div>

Following some users requesting further clarification of how incentives are calculated for cbBTC as mentioned in the [onboarding proposal](https://governance.aave.com/t/arfc-onboard-cbbtc-to-aave-v3-on-base-and-mainnet/18988), we are further clarifying the criteria and high-level calculation steps.

1. **Eligibility Criteria** :
  - Users must hold **cbBTC as collateral** and **USDC as debt** to qualify.
  - If users have multiple collateral assets, only the borrowing power of **cbBTC** is considered.
  - If users have multiple debt types, only **USDC debt** is counted.

2. **APR Calculation** :
  - The APR is determined based on the following formula:**APR = f(min(USDC debt, cbBTC value \* max LTV)**
  - This formula considers the lower value between the user’s USDC debt and the maximum loan-to-value (LTV) for their cbBTC holdings.

3. **Boosters** :
  - There are two unique boosters that users can activate, each providing a multiplier applied **after the main rewards calculation** :
    - **Collateral Switch** : Switching collateral from **wBTC to cbBTC**. This booster can only be activated once per user.
    - **Debt Switch** : Switching debt from **USDT to USDC**. This booster can also only be activated once per user.

4. **Rewards Distribution** :
  - Positions are reviewed, and rewards are distributed on a **weekly basis**.