This topic describes unidirectional GRE encapsulation (GREv4) on the Cisco 8000 Series Router, where the tunnel encapsulates an IPv4 or IPv6 payload inside a GRE header for transport across an IP network.
A tunnel configured using encapsulation mode performs encapsulation of IPv4/IPv6 payload inside the GRE header. The following figure shows GRE encapsulation. Routers in the IP cloud have no knowledge of encapsulated IP source address or destination address.

Configuration example
This example shows how to configure GRE tunnel encapsulation:
interface tunnel-ip1
ipv4 address 101.0.1.1/24
ipv6 address 101:0:1::1/64
tunnel mode gre ipv4 encap
tunnel source [ loopback1 | <any-ipaddres> | any-interface]
tunnel destination [ 20.0.1.1/32 | 20.0.1.0/24 | 20.0.1.0/28]
router static
address-family ipv4 unicast
201.0.1.0/24 tunnel-1
router static
address-family ipv6 unicast
201:0:1::0/64 tunnel-1