
Configuring LACP on vDS given design parameters
The Link Aggregation Control Protocol (LACP) is a standard that bundles several physical ports together to form a single logical channel. Usually, it's called dynamic link aggregation (in contrast to static link aggregation).
LACP is fully supported in vSphere 5.1 and later, but only with vDS (vSS can only support static link aggregation or EtherChannel, with the IP hash teaming policy).
LACP must be prepared correctly for the physical part of the networking. You create Link Aggregation Groups (LAG); every LAG group has two or more ports. You can create up to 64 LAGs.
Each LAG can be created using the vSphere Web Client, in the Configure tab of the selected vDS, under the LACP menu.
Just click on the New Link Aggregation Group icon:

You can choose how many physical NIC ports will be used for the LAG (minimum two) and several different parameters that must match the same setting on the physical switches.
The LAG Mode options can be:
- Passive: The LAG ports do not initiate LACP negotiations
- Active: The LAG ports initiate negotiations with the LACP Port Channel at the physical switched side
The LAG load balancing mode (LNB mode) option can be:
- Source and destination IP address, TCP/UDP port, and VLAN
- Source and destination IP address and VLAN
- Source and destination MAC address
- Source and destination TCP/UDP port
- Source port ID
- VLAN
Now you can use the Migrating network traffic to LAGs wizard to migrate your network to the LACP configuration:

For more information, see the vSphere 6.5 Networking guide (https://docs.vmware.com/en/VMware-vSphere/6.5/com.vmware.vsphere.networking.doc/GUID-0D1EF5B4-7581-480B-B99D-5714B42CD7A9.html).