What is Polyurethane? Oil-based polyurethane is simply a type of varnish. Its common alkyd varnish made with some polyurethane thinners added. Alkyd is a resin that is found in nearly all varnishes and oil-based paints. The polyurethane resin gives the alkyd varnish scratch, heat, solvent, and water resistance. Polyurethanes are always two-part materials. They cure …