I believe it's both, in a way.

As far as wg is concerned, the AllowedIPs is effectively an ACL.  Any traffic 
hitting your wireguard interface from an IP not within the AllowedIPs will 
either be dropped on decryption, or won't even be decrypted.  (It's one of 
these, but I can't remember which)

On top of that, wg-quick interprets the AllowedIPs string and does other 
things, such as adding appropriate network routing (the second part of your 
guess), as well as modifying any client firewall rules to permit the traffic.

Hope this helps  :)

E

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On Sun, 30 Aug 2020, at 04:07, Aaron Bolton wrote:
> I’m trying to understand AllowedIPs better is it effectively a ACL
> that day what is allowed down the tunnel or is it mechanism to
> configure what addresses get routed down the tunnel?
> 
> Thanks in advance
>

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