I've actually been hacking on a similar FOSS project lately, with a focus on building what I'm calling a layer 3 service mesh for the edge. More or less came out of my learned hatred for managing mTLS at scale and my dislike for shoving everything through a L7 proxy (insane protocol complexity, weird bugs, and you still have the issue of authenticating you are actually talking to the proxy you expect).
Last week I got the first release of the userspace router shipped, worth taking a look if you want to play around with a completely userspace and unprivileged WireGuard compatible VPN server.
https://github.com/noisysockets/nsh/blob/main/docs/router.md