Single VTEP with LACP

In LACP, all the physical uplinks are logically aggregated into a single logical connection through a single VTEP. For LACP to work, link aggregation or port channel is required on the physical switches. If the uplinks are connected to different physical switches, multi-chassis link aggregation is required. See the following link to understand more about multi-chassis link aggregation: https://en.wikipedia.org/wiki/MC-LAG.

While LACP with layer 4 hashing and an IP hash can be used, this configuration is not optimal for NSX VTEP deployments. LACPv2 with layer 4 hashing should be used if a link aggregation is required. A very good explanation on using LACP or an IP hash for NSX VTEP can be found at http://www.routetocloud.com/2014/05/nsx-and-teaming-policy/.