diff --git a/client/firewall/uspfilter/localip.go b/client/firewall/uspfilter/localip.go
index e9295dbf1..49c07ab53 100644
--- a/client/firewall/uspfilter/localip.go
+++ b/client/firewall/uspfilter/localip.go
@@ -11,12 +11,10 @@ import (
 	"github.com/netbirdio/netbird/client/firewall/uspfilter/common"
 )
 
-// localIPSnapshot is an immutable snapshot of local IP addresses.
-// The entire snapshot is swapped atomically so reads are lock-free.
+// localIPSnapshot is an immutable snapshot of local IP addresses, swapped
+// atomically so reads are lock-free.
 type localIPSnapshot struct {
 	ips map[netip.Addr]struct{}
-	// loopbackV4 is pre-checked to avoid map lookups for 127.0.0.0/8
-	loopbackV4 bool
 }
 
 type localIPManager struct {
@@ -95,10 +93,7 @@ func (m *localIPManager) UpdateLocalIPs(iface common.IFaceMapper) (err error) {
 		}
 	}
 
-	m.snapshot.Store(&localIPSnapshot{
-		ips:        ips,
-		loopbackV4: true,
-	})
+	m.snapshot.Store(&localIPSnapshot{ips: ips})
 
 	log.Debugf("Local IP addresses: %v", addresses)
 	return nil
@@ -108,11 +103,8 @@ func (m *localIPManager) UpdateLocalIPs(iface common.IFaceMapper) (err error) {
 func (m *localIPManager) IsLocalIP(ip netip.Addr) bool {
 	s := m.snapshot.Load()
 
-	// Fast path for 127.x.x.x without map lookup
-	if s.loopbackV4 && ip.Is4() {
-		if ip.As4()[0] == 127 {
-			return true
-		}
+	if ip.Is4() && ip.As4()[0] == 127 {
+		return true
 	}
 
 	_, found := s.ips[ip]
diff --git a/client/firewall/uspfilter/localip_bench_test.go b/client/firewall/uspfilter/localip_bench_test.go
new file mode 100644
index 000000000..11bdee7ab
--- /dev/null
+++ b/client/firewall/uspfilter/localip_bench_test.go
@@ -0,0 +1,70 @@
+package uspfilter
+
+import (
+	"net/netip"
+	"testing"
+
+	"github.com/netbirdio/netbird/client/iface/wgaddr"
+)
+
+func setupManager(b *testing.B) *localIPManager {
+	b.Helper()
+	m := newLocalIPManager()
+	mock := &IFaceMock{
+		AddressFunc: func() wgaddr.Address {
+			return wgaddr.Address{
+				IP:      netip.MustParseAddr("100.64.0.1"),
+				Network: netip.MustParsePrefix("100.64.0.0/16"),
+				IPv6:    netip.MustParseAddr("fd00::1"),
+				IPv6Net: netip.MustParsePrefix("fd00::/64"),
+			}
+		},
+	}
+	_ = m.UpdateLocalIPs(mock)
+	return m
+}
+
+func BenchmarkIsLocalIP_v4_hit(b *testing.B) {
+	m := setupManager(b)
+	ip := netip.MustParseAddr("100.64.0.1")
+	b.ResetTimer()
+	for i := 0; i < b.N; i++ {
+		m.IsLocalIP(ip)
+	}
+}
+
+func BenchmarkIsLocalIP_v4_miss(b *testing.B) {
+	m := setupManager(b)
+	ip := netip.MustParseAddr("8.8.8.8")
+	b.ResetTimer()
+	for i := 0; i < b.N; i++ {
+		m.IsLocalIP(ip)
+	}
+}
+
+func BenchmarkIsLocalIP_v6_hit(b *testing.B) {
+	m := setupManager(b)
+	ip := netip.MustParseAddr("fd00::1")
+	b.ResetTimer()
+	for i := 0; i < b.N; i++ {
+		m.IsLocalIP(ip)
+	}
+}
+
+func BenchmarkIsLocalIP_v6_miss(b *testing.B) {
+	m := setupManager(b)
+	ip := netip.MustParseAddr("2001:db8::1")
+	b.ResetTimer()
+	for i := 0; i < b.N; i++ {
+		m.IsLocalIP(ip)
+	}
+}
+
+func BenchmarkIsLocalIP_loopback(b *testing.B) {
+	m := setupManager(b)
+	ip := netip.MustParseAddr("127.0.0.1")
+	b.ResetTimer()
+	for i := 0; i < b.N; i++ {
+		m.IsLocalIP(ip)
+	}
+}
diff --git a/client/internal/connect.go b/client/internal/connect.go
index f0836aa0a..4b1448e21 100644
--- a/client/internal/connect.go
+++ b/client/internal/connect.go
@@ -40,7 +40,6 @@ import (
 	"github.com/netbirdio/netbird/client/system"
 	mgm "github.com/netbirdio/netbird/shared/management/client"
 	mgmProto "github.com/netbirdio/netbird/shared/management/proto"
-	"github.com/netbirdio/netbird/shared/netiputil"
 	"github.com/netbirdio/netbird/shared/relay/auth/hmac"
 	relayClient "github.com/netbirdio/netbird/shared/relay/client"
 	signal "github.com/netbirdio/netbird/shared/signal/client"
@@ -530,16 +529,8 @@ func createEngineConfig(key wgtypes.Key, config *profilemanager.Config, peerConf
 	}
 
 	if !config.DisableIPv6 {
-		if raw := peerConfig.GetAddressV6(); len(raw) > 0 {
-			prefix, err := netiputil.DecodePrefix(raw)
-			if err != nil {
-				log.Warnf("decode v6 overlay address: %v", err)
-			} else if !prefix.Addr().Is6() {
-				log.Warnf("expected IPv6 overlay address, got %s", prefix.Addr())
-			} else {
-				wgAddr.IPv6 = prefix.Addr()
-				wgAddr.IPv6Net = prefix.Masked()
-			}
+		if err := wgAddr.SetIPv6FromCompact(peerConfig.GetAddressV6()); err != nil {
+			log.Warn(err)
 		}
 	}