Before you deploy the workload domain, you must configure the NSX host overlay network on the SmartFabric. During VCF deployment, every VxRail node becomes an NSX host transport node. Each NSX host transport node is assigned a TEP IP address on the NSX host overlay network.
NSX host transport nodes get their TEP IP address from DHCP or an IP pool. If you use DHCP, as in this example, you specify the IP address of the DHCP server as an IP helper address in SFS.
If you have a single rack SmartFabric topology (with a maximum of two leafs in the SmartFabric), create the NSX host overlay network as a Layer 3 VLAN. The network is created using the SFS UI or OMNI under Network > Networks > VLAN Networks.
If you have a multirack SmartFabric topology (more than two leafs in the SmartFabric), create the NSX host overlay network as a Multirack Layer 3 VLAN. Doing this allows you to put hosts that are in the same domain in different racks. You can create the network using the SFS UI or OMNI under Network > Networks > Multirack L3 VLAN.