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Dynamic Host Configuration Protocol (DHCP), described in RFC 1541, is an extension of the Bootstrap Protocol (BOOTP). DHCP allows hosts on a TCP/IP network to dynamically obtain basic configuration information.

When a DHCP client starts up, it broadcasts a DHCP discovery packet looking for DHCP servers. DHCP servers respond to this packet with a DHCP offer packet. The client then chooses a server to obtain TCP/IP configuration information (such as an IP address). The configuration information is allocated (leased) to the client for a short period of time (such as seconds or minutes). The client must periodically renew its lease in order to continue to use the configuration.

If a DHCP client needs to find a DHCP server over the WAN, the Pipeline initiates a connection to enable the client to reach the DHCP server.

If a DHCP client needs to connect to a remote DHCP server through a Pipeline and uses a SecurID card, the client needs to be given a temporary address by the Pipeline in order to obtain authentication.

In this type of environment, the Ascend Password Protocol (APP) server must first authenticate a user before a call to the remote network can be made. APP authentication requires an IP address, but will accept a temporary (spoofed) address supplied by the Pipeline.

The Pipeline can be configured to temporarily act as a DHCP