We use Cypress mulch in all of our indoor tegu enclosures . If you can not find Cypress in your area Eucalyptus mulch or Orchid Bark is a suitable replacement . Tegus like to dig and will eventually dig at and pull lose strings in the carpet getting their toes caught in it . This can lead to loss of toe nails or loss of toes depending on how tangled they become. Usually not but especially not with lizards .
Lizards can have feces or old food trapped underneath their nails .
If allowed to soak this can contaminate the water and if they quickly take a drink they can become ill . If your tegu gets dirty it is much safer to bathe your lizard under running water so that there is no chance that they might drink it . Do not bathe your tegu constantly they are NOT aquatic lizards and most like the Argentine Red do not enjoy going for a swim . Constantly keeping these lizards wet is NOT healthy for them and can be very stressful . Caution should be used never to bathe any reptile or wash anything that belongs to any reptile in a kitchen sink or near any food preparation areas .