It's a granular product, looks a little like sand. I use it, too. I quit using DE for awhile in the coop for a reason I won't go into here, but DE plus Sweet PDZ does help. I find I need to put a large amt of PDZ or it doesn't do much to alleviate ammonia. It has to be used in sufficient quantities, in my experience.
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So if I understand you correctly you dont use a poop tray? I'm still in the process of building my ladies home and it is about 95% done. I still need to make the nesting boxes and finsh putting in the lower perches. Since it is only 6X8 ft adding a poop tray or not is where I'm at in the roost area. I prefer not to add one. If it means I have to visit them a few times a day to rake the poop under so be it, as it is my wife thinks I'll miss the ladies when they move out to the coop. Currently they occupy a large percentage of the hearth in the brood box plus additional space for a run. They were out growing the 2X2X4' crate i had them in to begin with. I added 2' in height to it then and additional 2X4' area outside the crate for food/water. The first time I let them out into that area they spent most of their time running from one end to the other. I guess calling in a run was right LOL
Farmer Mack
3 barred, 2 lt brahmas, 2 prod blk, 2 dark cornish, and 2 wht cochlins
oh ya and 2 cats that are now afraid of the 5week old "hawks" i keep showing them ROTFL