All soft woods - wood from coniferous trees (ie evergreens) - are unsuitable. They have sap that may pollute your tank when new (esp. cedars), and rot quickly when aged.
Hard woods that had been aged a few seasons make good driftwood. Just watch out for poisonous ones (eg black walnut.)
This is a list of toxic wood for degus:
Toxic Wood List
You can ignore the ones with wood dust being skin irritants, but be careful on those with intrinsic toxins.
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80 gal FW with 30 gal DIY wet/dry/sump.
9 fancy golds, 1 hillstream loaches, 1 rubber-lip pleco (C. thomasi), 3 SAEs, small school of white cloud minnows, planted.
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