A method for virtual extensible local area network (VXLAN) encapsulation. The method includes receiving a first augmented MAC frame on a first ingress port of a first network device, where the first augmented MAC frame includes a first egress port ID (EPID), a first ingress port ID (IPID), and a first MAC frame. The method further includes identifying a first destination VXLAN tunnel endpoint (VTEP) internet protocol (IP) address based on the first EPID, where the first destination VTEP IP address is associated with a first destination VTEP. The method further includes identifying a source VTEP IP address based on the first IPID, performing VXLAN encapsulation of the first MAC frame to obtain a VXLAN frame, and sending the VXLAN frame to the first destination VTEP via a first egress port of the first network device.