I use satin spar varnish with excellent results on cedar, ash, birch, and spruce arrows. After the final coat (two is ample, but I often use 3 coats) I use steel wool to flatten the finish. I have to admit that in part I use varnish because I like varnishing. But, if you shoot 3-D targets a lot it too will suffer from target burn, although not nearly to the same extent as gasket lacquer.
BTW, my full finishing regimen is to stain the shafts, then taper the arrow (always with hardwoods, sometimes with softwoods) so I get a two tone effect and flight characteristics I prefer, and finish with varnish.