Does it oxidize or dry i know that oil paint oxidizes but does nail polish and paint do too?
Water-based nail polish is based on an acrylic polymer emulsion (e.g. styrene-acrylate copolymer), and pigments similar to those used in watercolor paints. Clear nail polish can be used on jewelry to coat and protect the metals from oxidizing.
Oxidize? You mean rust? Oil paint doesn't rust.