The correct configuration to reduce LDP LIB size and advertise label bindings for the /32 loopback IP space only is to use an IP prefix-list that specifies the /32 prefix length and then configure MPLS LDP to allocate labels for these prefixes. The ip prefix-list LOOPBACKS seq 5 permit 0.0.0.0/0 le 32 command creates a prefix-list named LOOPBACKS that allows any IP address with a prefix length less than or equal to 32. The mpls ldp label allocate global prefix-list LOOPBACKS command then instructs the router to allocate labels for all prefixes permitted by the LOOPBACKS prefix-list, which in this case, would be all /32 prefixes. References: The explanation is based on the concepts covered in the SPCOR course, specifically the sections on MPLS LDP configuration and optimization. For more detailed information, refer to the official Cisco SPCOR course materials and documentation available at Cisco’s official training page.