That's right. The technique is just passive hydroponics. Instead of using the color of the surface as a signal as when to bottom water, you can keep some water/nutrient solution in your tray at all times, the DE will draw up the liquid through capillary action as needed. There is always plenty of air space between the large DE particles so there is no worries about water logging like there is in seed starting mix or potting soil. It's kind of like a miniature SWC except you are using a totally inorganic medium to anchor the roots.
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