# Nitro Point → xNIT

Nitro Points earned from protocol interactions are converted into xNIT tokens through a structured mechanism involving oracle valuations, and the boost factor.

### **Nitro Points and Conversion**

Nitro Points are awarded based on pairwise interactions within the protocol, such as providing liquidity or engaging in debt interactions. Each Nitro Point is tagged to the trading pair and denominated in the quote asset of that pair.

**For example:**

* **USDC/NAD** pair: Points earned $$(NP\_{\text{usdc/nad}})$$are denominated in USDC.
* **SOL/NAD** pair: Points earned $$(NP\_{\text{sol/nad}})$$are denominated in SOL.

### **Conversion to xNIT**

Nitro Points are converted into **xNIT** for processing in the reward contract.

* **Oracle Valuation**:\
  The protocol uses an oracle to value the Nitro Points $$(NP\_{\text{Pair}})$$ in terms of the quote asset.
  * $$xNIT= NP\_{\text{Pair}} \times \text{Oracle Price of Quote Asset}$$<br>
* **Boost Factor**:\
  To incentivize specific pairs, the protocol may apply a boost factor that multiplies the value of Nitro Points earned for those pairs:
  * $$xNIT = NP\_{\text{Pair}} \times \text{Oracle Price} \times \text{Boost factor}$$

{% hint style="success" %}
This **xNIT** value is then used in the subsequent conversion to NIT tokens, ensuring seamless integration of rewards across multiple trading pairs.
{% endhint %}

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