Stellar Community Fund

Spinach

SCF #35

Build Eligible

Build

Spinach helps projects and chains grow DEX liquidity by running liquidity competitions for builders within their ecosystem. Spinach started in response to witnessing flaws in two leading ecosystem growth methods: 1. Grant funding for builders - works great at first, but many builders struggle to secure follow-up funding 2. Liquidity incentives (e.g. merkl.xyz) - work too well. Whales bridge over to farm incentives, but vanish within 48 hours once incentives stop To sustainably bind users and liquidity providers to your ecosystem you need to go beyond these growth methods. Enter Spinach’s retrofunding liquidity competitions for builders. Using Spinach you can launch competitions as follows: 1. Choose token whose liquidity you want to grow 2. Allocate a daily incentive budget 3. Announce to projects they can get part of this incentive budget by orchestrating liquidity against their token and the incentivized token 4. Projects then rally their community to grow this liquidity 5. On a daily basis at midnight, Spinach calculates the liquidity orchestrated per participating project; and 6. Then retroactively distributes rewards to the projects proportional to the liquidity they orchestrated per day In early testing, we found Spinach has 3 benefits over direct liquidity incentives: 1. Noise machine - projects and their communities actively promote the competition 2. Core community - participants are true fans of your ecosystem and are here for the longterm 3. 2nd-order effects - projects often launch direct liquidity incentive programs of their own This creates a positive-sum flywheel where everyone wins—the chain, its builders, the community, and the broader ecosystem. In Q2 ‘25 we’ll launch Spinach MVP to allow anyone to launch liquidity competitions for builders.