This feature allows encapsulating (and decapsulating) L2 traffic from a given interface or subinterface over a GRE tunnel. An MPLS label is added to identify the ingress interface (similar to MPLS pseudowires) and the GRE tunnel is used to transport the packets to a remote endpoint.

The LDP pseudowire feature provides support for emulating Ethernet connections over a Multiprotocol Label Switching (MPLS) network using the extension of the MPLS Label Distribution Protocol (LDP)