if you want a ti-dye effect, then why not actually ti-dye then cover the guitar in fabric, like this guy did...
anyway, the underlying paint, (if you do choose to paint) can be an kind of paint.
basically, paint, then sand smooth.
then laqure one, then sand the laqure to give a key and re-laqure... repeat lots of times. then say hello to our sihny guitar.
the high gloss effect is achieved through multiple samding/laquering polishing, not just through lots or varnish.