Localization of next-hop-based dynamic tunnels

Next-hop-based dynamic generic routing encapsulation (GRE) tunnels and MPLS-over-UDP tunnels distribute forwarding information to all line cards on a device. As a result, the origination and termination states of all tunnels are built on the Packet Forwarding Engines (PFEs) on every line card on the device, limiting the maximum number of tunnels supported on the device to the tunnel capacity of a single line card. You can configure next-hop-based dynamic tunnel localization to create the forwarding information only on the PFE of a line card that is designated as the anchor PFE. The PFEs on the other line cards on the device have state forwarding information to steer the packets to the anchor PFE.