Did somebody say seahorses?
Yes the tank should cycle. Dwarfs are one of the few things I don't suggest be kept with live rock, except perhaps a bit of rubble. I've seen bristleworms come and pluck the little ponies right off their holdfast

This is the ONLY healthy fish I've seen bristleworms bother, and it freaked me out how the little pony just sat there and got eaten
To feed Hippocampus zostrae you need to hatch live brine, all the time. They can eat adult brine too, but the horses reproduce prolifically if you have a "herd" of them, and the babies eat artemia nauplii. Babies can be kept in with the parents.
Sponge filters are best for these tiny charges, if you have another tank, you can cycle sponge filters in your main tank, and transfer the sponges to the horse tank. Exchange sponges when necessary, swap a new cycled sponge for the old dirty one, and bleach, dechlorinate, air dry and re-cycle sponges as with use of live brine, you will inevitiably get hydroids. I kept keyhole limpets in with mine, they eat hydroids. Hydroids will also sting and eat your ponies.
They are labour-intensive, but they are most amusing.
HTH
Jenn
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