Help info on Oil's and Stains for Lime Marionette

Hello,
This is my first time carving. I'm a university student in England in my final year. I've been making a traditional wooden marionette and would love some advice on finishes.

He's made of Lime wood and has many joints. My concern with using a stain is that it could clog up the moving joints when it's applied. I've got a knack for doing this with automata, it always works perfectly before painting, but after, all the joints are stiff.

My friend has made a less complex puppet also of lime and used a few coats of Danish Oil to finish it, Its a great finish and also cause it soaks in doesn't clog up. But I'd like to know about some alternatives. I've seen alot of Wood Dyes, in particular 'Liberon'. I was wondering how these come up (before I go spending £5 on each tin and find they're no good). With Dyes do I have to varnish the final coat to seal and protect the wood? Can I use Danish oil on the final layer? I really don't want to use varnish cause of its thickness and tendency to clog.

Also what are the advantages of Alcohol based stains to water based? I really have no clue here and could do with a bit of tutoring on the subject. Thanks very much,
Billie