Converting Loyalty Points to ISK
The Federal Defense union LP you get from faction warfare can be traded along with combinations of basic items, such as Caldari Navy Tags and ISK for new items.
There are basically two different ways for you to go about this. The first is to use the corporate LP buyback program run by Bigdaddy Toothbrush and Papa Bearfish. Contact them in game to set up a meeting in Fliet Federal Defense Union Station. The rate at which they gives you ISK for LP is posted in the in-game Corporation Chat MOTD.
The other is to trade in the items yourself and sell the purchased items at a tradehub. The Fuzzworks website provides a calculator for LP to isk conversion rates.
When using the tool take note of the volumes that are being sold and note that the data the calculator uses is not always upto the minute accurate. It’s better to use it as a way to find items to look at and check the math yourself. Also it’s good to keep in mind that the time you spend researching how to spend your LP is time you’re not spending making LP. Finally, the price of LP fluctuates, most notably with the changes in Warzone control (Tiers 1 to 5) which change the LP rewards for FW actions. This means that it may be beneficial to hold on to your LP points if Gallente is about to drop to a lower tier. That being said, a lot of people will be doing the same and an actual rise in prices might take some time.