Soft wood
Cedar is actually a crummy wood for a paddle except for one plus - it’s light. If your paddling is gentle pond paddling, then maybe varnish would be fine. But most GP users bang and bruise their paddles a lot. It’s just the nature of paddling. My brother uses a pine laminated paddle in salt and fresh water and hasn’t put any more oil on it in at least 3 years. it’s dry and white looking but works fine and contrary to common myths, it is not rotting and never will. A lot of oiling is for appearance and supposedly to keep water from penetrating. But I know for a fact, it is not really needed. I slap some oil on mine about once a year, wipe it off and thats that.
Ditto
Cedar is a delicate wood for any kind of aggressive paddling. I have been able to find spruce that is almost as light as cedar but much stronger. And as far as oiling the paddle, I have oiled my spruce paddles only twice in five years and they are just fine. Oil requires very little maintenance and seals the wood very well.