What are the functions of tunnel interface IP addresses

An tunnel interface IP address enables the tunnel interface to become Up and is mandatory. The IP address is not involved in packet encapsulation.
When static routes are used to direct traffic to a GRE tunnel, the IP address of the interfaces at both ends of the tunnel can belong to different network segments. When an GRE tunnel is established for OSPF routing exchange between two networks connected to the tunnel, the IP address of the interfaces at both ends of the tunnel must belong to the same network segment. Otherwise, the tunnel interfaces fail to establish an OSPF adjacency.

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