The Prestera chips theoretically support hardware offload of vxlan. We have vxlan software support, but no comments on whether hardware offload may be coming. Is this a roadmap feature, a "we don't think customers really want it", or "we've determined it'll take different chips"?
It would be awesome to deploy vxlan driven networks with the CRS3/5xx series chips, rather than needing to "step up" to Aruba/Cisco/whatever.
The essential idea/advantage is you can run a full L3 distribution layer and still have L2 roaming across the network. So every edge/access switch might have one big "printers" vlan, but the same "printers" vlan doesn't exist on your aggregation or core layers.
Edit: to cut-off the "why not EoIP or GRE" answers. In short, cross-compatibility. I've had to deploy vxlan in production crossing Aruba/Cisco/Dell/Fortinet without issue. VXLAN has some multicast features that make it much more attractive than the other two for the scenario described above (NVGRE is a competing standard, but support is rarer). Honestly, my primary use has been doing stupid L2 bridge over L3 connection scenarios with mis-matched hardware.