I’ve found they don’t actually make mucous cocoons like the Fairy and Flasher Wrasses are known for.
They don’t use the sand either, instead they just tuck themselves into a secure crevice that they feel safe in and sleep in there.
interesting, I thought I read something about it somewhere on the species thread.
I did notice a decent sized patch of some mucus looking substance in one of the holes/caves the day after adding the fish but never saw it again after that.