4• Local MAC—MAC entries dynamically learned from the local site. The outgoing interfaces forthe MAC address entries are site-facing interfaces. VXLAN does not support static local-MACentries.• Remote MAC—MAC entries learned from a remote site. The outgoing interfaces for the MACaddress entries are VXLAN tunnel interfaces.{ Static—Manually added MAC entries.{ Dynamic—MAC entries learned in the data plane from incoming traffic on VXLAN tunnels.The learned MAC addresses are contained in the inner Ethernet header.For a MAC address, the manual static entry has higher priority than the dynamic entry.Traffic forwardingThe device performs Layer 2 or Layer 3 forwarding for VXLANs depending on your configuration.• In Layer 3 forwarding mode, the device uses the ARP or ND table to forward traffic for VXLANs.• In Layer 2 forwarding mode, the device uses the MAC address table to forward traffic forVXLANs.Use Layer 3 forwarding mode if you want to use the device as a VXLAN IP gateway.This section describes the Layer 2 forwarding processes. For information about Layer 3 forwarding,see "Configuring VXLAN IP gateways."A VTEP uses the following processes to forward traffic at Layer 2:• Unicast process—Applies to destination-known unicast traffic.• Flood process—Applies to multicast, broadcast, and unknown unicast traffic.When the VTEP forwards VXLAN traffic, it processes the 802.1Q tag in the inner Ethernet headerdepending on the VSI access mode (VLAN or Ethernet mode). In VLAN access mode, sites can usedifferent VLANs to provide the same service. For more information, see "Access mode of VSIs."UnicastThe following process (see Figure 4) applies to a known unicast frame between sites:1. The source VTEP encapsulates the Ethernet frame in the VXLAN/UDP/IP header.In the outer IP header, the source IP address is the source VTEP's VXLAN tunnel source IPaddress. The destination IP address is the VXLAN tunnel destination IP address.2. The source VTEP forwards the encapsulated packet out of the outgoing VXLAN tunnelinterface found in the VSI's MAC address table.3. The intermediate transport devices (P devices) forward the frame to the destination VTEP byusing the outer IP header.4. The destination VTEP removes the headers on top of the inner Ethernet frame. It then performsMAC address table lookup in the VXLAN's VSI to forward the frame out of the matchingoutgoing interface.