I have not kept dwarf seahorses but I have read a lot. I also know that they are very vulnerable to bacterial infections like their bigger relatives which I do keep.
For that reason I would be hesitant to use a DSB which would be necessary to grow any sort of grass. Also I would be hesitant to fertilize any type of grasses. Food is more easily trapped on sandbeds which could fuel pathogenic bacteria. I just don't know if fertilizers used to nourish the grasses could potentially encourage dangerous bacterias.
Also can the grasses endure treatments for hydroids which can be problematic. That is why most coral are not kept in DSH tanks because the coral do not respond well to the med used to kill hydroids.
Perhaps someone who has actual experience with dwarf seahorses will jump in.
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