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For BGP unnumbered, the next-hop address for each prefix is an IPv6 link-local address, which is assigned automatically to each interface. Using the IPv6 link-local address as a next-hop instead of an IPv4 unicast address, BGP unnumbered saves you from having to configure IPv4 addresses on each interface.

NOTEs:

BGP unnumbered can only be used on two switches with point-to-point connection.

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