What is the mechanism employed by "ip verify unicast"? Does it create
on-the-fly an ACL for each
interface that it is applied to containg in my case just one entry that
matches the network address
of the interface? In this case in a typical BRAS terminating 16000 users
would require 16000 dynamically
created unique ACLs (or policy-lists in the ERX).

I do not think it works like that on Cisco kit.

I think it basically does this:

 output_interfaces = cef_lookup(src)
 if input_interface in output_interface:
   forward
 else
   drop

...that is, each packet effectively has 2 route lookups; one on the source IP to check the packet has come in on a valid interface, then a 2nd on the destination IP to actually forward the packet.

I have no idea what the ERX does - best ask on a Juniper list.

I would recommend using uRPF unless you have a compelling reason not to.
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