I've started using parafin on my carbon blades myself. It doesn't rub off nearly as easily as oils or grease, and it doesn't stain leather and wood like oils do. The nice thing is even if some wears off a portion of the blade, you can use your finger to smear it around again for full coverage. Since it's used to seal jars of canned food, I'm betting it's pretty safe. Damascus should work even better in this regard, since the oil/wax/grease doesn't get wiped out from the valleys as easily, and you can just rub the blade to spread it over the surface again. edit: I should mention that's what I do with my using blades, but it's very thick and will obscure the finish on a nice dispay knife. Any oils or grease will hide a good polish, but my old roommate used to use one of those silicone impregnated rags on his shotguns, and I swear it made them look brand new again. Doesn't seem to leave much of a residue behind, so ya don't even need to wipe the blade clean in order to study the polish.
As a side note, kudos for using your damascus blades. Some people get worried about messing them up, but I personally think they age/wear much more gracefully than plain carbon steels. The pattern hides scuffs and minor scratches in the finish, and they already have that dark patina to start with, so ya don't have to worry about stains. While cutting, the ridges in the pattern get worn smoother & brighter, while the valleys collect gunk and oxidize quicker (once you've used it enough to wipe out all of the protective coating)- which only creates more contrast and beauty in the pattern.