I use Pine Bark Mulch around many plants, but daylilies would not be one of them. Mulch is a great hiding place for slugs, which enjoy munching on daylilies (think of it as a cool dark cover for them during the day)........... Ants favor mulch too. I'm constantly disrupting massive colonies underneath my bark mulch. Ants and aphids have a mutually beneficial association. The ants milk aphids for their honeydew and drive off aphid predators, thereby protecting them. They have been known to even carry aphids in to start up a new "ranch". Along with slugs, aphids are one of daylilies main pests......Personally I think that seedlings might be better off without mulch and all the unsavory critters it can harbor............Maryl