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It's nothing fancy, has no lid or real light and my first diy sponge filter, but it sure beats having to keep them all in a breeder net in my main tank. We're hoping to move soon, so then they'll get a super sexy love hut lol
That setup is fine. More room to roam and plenty of places for biofilm to develop.
One thing you might consider is adding a (acrylic/pvc) tube to the top of the bottle. It will create more of a "pull" through the filter.