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Our VXLAN (Virtual Extensible LAN) implementation transparently uses OpenBSD's vxlan(4) tunnel interface, and is configured in a fashion similar to EtherIP (with bridges). It's a network virtualization technology that attempts to ameliorate the scalability problems associated with large cloud computing deployments, which uses a VLAN-like encapsulation technique to encapsulate MAC-based OSI layer 2 Ethernet frames within layer 3 UDP packets[1].

It's generally recommended to increase the MTU of the parent interface to at least 1600, to allow for full-sized (1500) VXLAN encapsulated packets.

interface vxlan0 {
	vnet-id 9
	tunnel-ttl 3
interface bridge0 {
	member vxlan0
	member vmx0