This is a information KB for to ensure smooth traffic flow from the DCGW, Misconfiguration of this IP can result in dropped traffic at the edge.
Workaround:
- Configure the VTEP IP as the next-hop IP under the l2vpn EVPN address family.
- This workaround fixes the problem by giving the VTEP its own unique IP address. This way, it doesn't clash with the IP address used by the BGP session.
- This workaround is applicable to versions 3.0.x (Grindcore) and 3.1.x (Highline).
Configuration Scenarios:
Case 1: The local IP address of the MP-BGP session and VTEP IP are the same.
Refer to the below topology diagram, In this case the local IP address of the BGP session and the VTEP IP is the same.
BGP session IP: 10.1.1.2
In this scenario the next-hop address in the BGP NLRI in the BGP update would be 10.1.1.2.
BGP update packet -> Path attribute->Next hop network address ->Next Hop:
10.1.1.2.
Case 2: The local IP address of the MP-BGP session and VTEP IP are different.
Please to the refer the below topology. In this case the local IP address of the BGP session and the VTEP IP are different.

In this case the next hop IP in the BGP packet will be different from the IP
address of the packet.
In this scenario the next-hop address in the BGP NLRI in the BGP update would be 192.168.100.12.
BGP Update packet->Path attribute->Next hop network address ->Next Hop:
192.168.100.12
Note - Configuring the DCGW to this effect can vary between different vendors. Some routers have a specific command to explicitly indicate the VTEP IP, while others may require configuring the next-hop IP of the outbound BGP packets.