there is OSPF proces running for IGP adverising loopback addresses and 10.10.10.0/30 network, there is also BGP signalled VPLS on bridge interface simulating CE routers. VPLS works fine as long as BGP peer's address are addresses of physical interfaces eth2 on other sides of the link, the moment i change BGP peer to loopback address and update source to lo0 interfaces the VPLS stops working, despite BGP peering being established. I can succesfully ping every address on both sides and see bgp injected routes in routing tables, What's the missing factor in play here, why does the VPLS stop working ?
routers configuration
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#pe1 router
/interface bridge
add name=c1s1 protocol-mode=none
add name=lo0 protocol-mode=none
/interface wireless security-profiles
set [ find default=yes ] supplicant-identity=MikroTik
/routing bgp instance
set default router-id=1.1.1.1
/routing ospf instance
set [ find default=yes ] router-id=1.1.1.1
/interface vpls bgp-vpls
add bridge=c1s1 export-route-targets=0:1 import-route-targets=0:1 name=ppe2 route-distinguisher=0:1
/ip address
add address=10.10.10.1/30 interface=ether2 network=10.10.10.0
add address=192.168.10.1/24 interface=c1s1 network=192.168.10.0
add address=1.1.1.1 interface=lo0 network=1.1.1.1
/ip dhcp-client
add disabled=no interface=ether1
/routing bgp network
add network=1.1.1.1/32
/routing bgp peer
add address-families=ip,l2vpn hold-time=10s keepalive-time=3s name=pe2 remote-address=2.2.2.2 remote-as=65530 \
update-source=lo0
/routing ospf network
add area=backbone network=1.1.1.1/32
add area=backbone network=10.10.10.0/30
/system identity
set name=pe1
#pe2 router
/interface bridge
add name=c1s2 protocol-mode=none
add name=lo0 protocol-mode=none
/interface wireless security-profiles
set [ find default=yes ] supplicant-identity=MikroTik
/routing bgp instance
set default router-id=2.2.2.2
/routing ospf instance
set [ find default=yes ] router-id=2.2.2.2
/interface vpls bgp-vpls
add bridge=c1s2 export-route-targets=0:1 import-route-targets=0:1 name=ppe2 route-distinguisher=0:1 site-id=2
/ip address
add address=10.10.10.2/30 interface=ether2 network=10.10.10.0
add address=192.168.10.2/24 interface=c1s2 network=192.168.10.0
add address=2.2.2.2 interface=lo0 network=2.2.2.2
/ip dhcp-client
add disabled=no interface=ether1
/routing bgp network
add network=2.2.2.2/32
/routing bgp peer
add address-families=ip,l2vpn hold-time=10s keepalive-time=3s name=pe1 remote-address=1.1.1.1 remote-as=65530 \
update-source=lo0
/routing ospf network
add area=backbone network=2.2.2.2/32
add area=backbone network=10.10.10.0/30
/system identity
set name=pe2