When a VEM has a vEthernet interface connected to a VXLAN, the VEM requires at least one IP/MAC pair to terminate VXLAN packets. In this regard, the VEM acts as an IP host. The VEM only supports IPv4 addressing for this purpose.
Similar to how the VEM L3 Control is configured, the IP address to use for VXLAN is configured by assigning a port profile to a vmknic that has the capability vxlan command in it.
To support carrying VXLAN traffic over multiple uplinks , or sub-groups, in server configurations where vPC-HM MAC-Pinning is required, up to four vmknics with the capability vxlan command may be configured. We recommend that all the VXLAN vmknics within the same ESX/ESXi host are assigned to the same port profile which must have the capability vxlan parameter.
VXLAN traffic sourced by local vEthernet interfaces is distributed between these vmknics based on the source MAC in their frames. The VEM automatically pins the multiple VXLAN vmknics to separate uplinks. If an uplink fails, the VEM automatically repins the vmknic to a working uplink.
When encapsulated traffic is destined to a VEM connected to a different subnet, the VEM does not use the VMware host routing table. Instead, the vmknic initiates an ARP for the remote VEM IP addresses. The upstream router must be configured to respond by using the Proxy ARP feature.