Techniques for implementing forwarding in network devices are provided. Proxy addresses are used in place of next hop addresses so that a large routing table is not required. Pairs of proxy IP and MAC addresses can be used to allow this optimization to occur completely transparent to any other device in the network. One or more smaller tables can be utilized in place of a large routing table to more efficiently implement forwarding. Additionally, the technique can be utilized without requiring modification of other hardware devices in the network.