The JUNOSe implementation of HDLC layer 2 circuits supports encapsulation of either HDLC frames or PPP frames within MPLS frames. By default, the router uses VC-type HDLC signaling and HDLC encapsulation to encapsulate HDLC frames in MPLS.
However, if you want the router to encapsulate PPP frames directly in MPLS without the HDLC header, you can include the optional relay-format ppp keywords in the mpls-relay or route interface command to cause the router to use VC-type PPP signaling and PPP encapsulation instead of the default VC-type HDLC signaling and HDLC encapsulation. This option, which is available only for serial and POS interfaces, is useful if the traffic carried on the serial or POS interface contains actual PPP packets and not, for example, Cisco HDLC packets.