any drawback to lending sfrxeth compared to just holding it? You will capture the rewards from the value of the token itself, so lending it is a no brainer right? For some reason I feel like I am missing something obvious here!
You can use it as collateral to borrow FRAX, there is no reward in supply sFrxEth other than using it as a collateral. If you want to earn lending rewards, you'll need to supply FRAX.
How much is the lending reward for Frax? I have sfrxEth just sitting there looking pretty and earning stake rewards. Is there a surplus in what Frax charges to lend u the Frax to what u earn in lending it out?
You can check for the overview of the APR for each pairs here https://app.frax.finance/fraxlend/available-pairs
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