VXLAN uses an 8-byte VXLAN header that consists of a 24-bit VNID and a few reserved bits. The VXLAN header together with the original Ethernet frame goes in the UDP payload. The 24-bit VNID is used to identify Layer 2 segments and to maintain Layer 2 isolation between the segments. Reference: https://www.cisco.com/c/en/us/td/docs/switches/datacenter/nexus9000/sw/7- x/vxlan/configuration/guide/b_Cisco_Nexus_9000_Series_NX- OS_VXLAN_Configuration_Guide_7x/b_Cisco_Nexus_9000_Series_NX- OS_VXLAN_Configuration_Guide_7x_chapter_010.html