Tor Switch L2 Or L3 ?

Hi,

I am newbie, i am trying to understand the physical networking required for VTEP.

- if Tor switch is L2 then it is easy to think Each VTEP Interface will get an IP from the same subnet, Pool for Example 192.168.100.10 - 192.168.100.20.
- But, if the Tor Switch is L3 then its Each port will act as a gateway / Router port, each port with different subnet. How do i Define the Pool here ?
i am confused here, each Vtep with Different Subnet ?

Please help me on this.