The coloring on damascus is generally accomplished once the blade is completely finished, meaning that you could do it with just about any damascus. The colors can be produced with Baking Lacquers, heat coloring, or hot/cold bluing solutions. They can be used alone or in combination to produce a wide array of colors/effects.
Out of those I listed, baking lacquer is the most durable, with heat coloring being the most fragile.
It takes a little playing around to figure it out, and get the effect(s) you desire. For example, baking lacquers work best on finer tighter patterns, that have been etched to the point where you can feel the topography with your fingertip. Heat coloring is basically oxide colors like those you would see when tempering a blade....and care must be taken to NOT exceed the tempering temps you used for the blade, otherwise you've basically softened the blade. Bluing solutions have their own quirks, but many of us have forgone the mixing, etc that traditional hot bluing tanks require by using Brownell's Nitre Blue.
Its just one more dimension a person can apply to their work, and as with anything, should be tested/experimented with to achieve the results an individual desires.