I'd like to see a better explanation of how this compares to the various Flannel backends (https://github.com/coreos/flannel#backends), and also how this would be plugged into a Kubernetes cluster.
IP-IP is the first encapsulation supported, but the Fan is engineered in a way that any encapsulation scheme can be added easily. We'll be adding support for VXLAN, GRE, STP tunnels as well. My colleagues will have blog posts about how to enable Kubernetes clusters with Fan Newtorking.