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In my personal experience, canvas doesn't really act like a hone per-se but it does have a sharpening effect on the edge. My guess is that because it's a rough surface it erodes any steel on the edge...

Hello and welcome to SRP!

To answer your questions:
1. Unless your blade came from a reputable source that prehoned it for you; then you must hone/have it honed.
2. The oil is probably meant for...