Hello networking_mat,
VXVLAN is also a L2 tunneling tecnique that allow to transport one or more Vlans over a routed internetwork.
host1--vlan/vni--vtep1---static tunnel---vtep2--vlan/vni--host2
ARP works because the host1 ARP request is transported from vtep1 to vtep2 and received by host2
host2 ARP reply will travel on the opposite direction.
ARP request has a broadcast destination address of FFFF.FFFF.FFFF and so vtep1 has to flood it over the VxVlan tunnel.
The same would happen if using L2TPv3 or an EoMPLS pseudowire.
Hope to help
Giuseppe
