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I know, but the performance takes a massive hit. Have you tried it? Maybe it was something I did wrong.

Native wireguard is kernel-only. Udp2raw creates a detour via userspace, so more CPU time, delay, jitter ..

Was it worse than you would expect? Worse than say openvpn or wireguard-rs/wireguard-go?

It's not that bad. Overhead is less than a full TCP encapsulation. I use it all the time