Some things to think about:
Of the two words favorite is the more important
You only have one favorite
Your favorite is something you enjoy/love the most
The site is user-driven—I am just providing the template
Hidden meanings, use of negative space, and wordmark are awesome, but please nothing too fancy
There is also a lot to say for minimalism and simplicity
The words Project and Favorite can be kept together, moved apart, put one on top of the other, put diagonally from each other, be the same size, or have favorite bigger or bolder than project.
I like the way ProjectFavorite looks with the first letter of both words
capitalized, but am not opposed to variations.
Please feel free to try out different color schemes; I will let you know if it feels right.
UPDATE: Please see comment board for the update
Here are some cool sites with collections of great logos to help inspire: