>> There, over the GRE links to other ALT routers, each ALT router >> forwards the packet according to its destination address 240.1.1.1. > > Right. While a minor point, its probably worth noting that you can BGP peer to the ALT over any interface type you like, so long as both sized can put the interface they are using into the VRF (default or otherwise) that is being used for the ALT. For example, the existing LISP+ALT network runs over GRE tunnels, as well as both native and dot1q ethernet interfaces (where that is more convenient; for example when the interface is one side of a cross connect). Dave
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