Worked example
A /30 provides two traditional usable endpoints; a /31 provides two RFC 3021 peer addresses without network and broadcast waste.
Generate point-to-point subnets for route-based IPsec VPNs and BGP peering. Easily split IP pools into Local and Remote endpoints, including CVI and NDI assignments for HA firewall clusters.
The 169.254.0.0/16 subnet is officially designated as Link-Local IPv4 address space. In the context of route-based VPNs (especially in cloud environments like AWS, Azure, and GCP), it is the "gold standard" for Virtual Tunnel Interfaces (VTIs) because:
10.0.0.0/8, 192.168.0.0/16).Allocate aligned point-to-point transit networks and endpoint addresses for VPN and BGP peerings.
A /30 provides two traditional usable endpoints; a /31 provides two RFC 3021 peer addresses without network and broadcast waste.
Confirm both devices support /31 point-to-point addressing before choosing it.