Yes a sand bed would be best preferably aragonite based and if deep enough eventually would provide denitrification.
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I do not have any live rock. Would I put this in the display tank, the sump or the drop off?
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Yes this rock would be placed in the display but you must make sure that it's fully cured otherwise you'll get an ammonia spike and likely would wipe out your fish population. You could also place live rock in your sump if you so choose.