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VPLS curiosity

So, my question relates to how VPLS terminates into Layer 3...

Let's say I have 2 sites that are connected via MPLS and I want to extend a VPLS between these sites as well. Assume also that I have the latest and greatest Cisco hardware with all requisite line cards for running VPLS between said sites. My question pertains to if and how the VPLS link terminates would into a SVI. I have been doing some reading and have come across xconnect and pueudowire, which, from what I can tell require you to run a physical cable out of a VPLS interface and back into another interface (that is a member of X Vlan that has an SVI) on that same switch... I know that other companies terminate VPLS into L3 in a similar fashion, but I can't help but think that the requirement to loop a physical cable on a box is a abit of a hack... jimmy-rigged solution, if you will... So, is there a more elegant/sophisticated way to terminate a VPLS (on the same switch) into a SVI/L3 interface with Cisco (outside of requiring a looped wire)? I have read about a VFI interface... is that the "SVI" for VPLS solution I seek?

Thanks in advance!