The above figure depicts a typical wireless network deployment.  In the above deployment, the traffic from wireless networks are encapsulated into VXLAN tunnels by the AP (Access Point) VTEPs and terminated at the aggregation switches.  When a host on the wireless network transmits a DHCP request broadcast packet, the AP encapsulates it in a VXLAN tunnel and sends it to the aggregation switch. 

This feature allows remote VTEP Tunnels to be routed over L3 SubInterfaces. DCS 7050SX3. Release.