L7 ingress xp.io not working

Hi all!
I have setup a pretty simple rancher with 1 cluster node and 1 worker node. Now I have deploy that works great when I access but ip. I wanted to test the l7 ingress thing, expecting that it will resolve my pod’s ip into a xp.io hostname but it fails…
How the dns resolution is supposed to work in rancher? I have pfsense with ubound installed has my internal dns and I don’t really know what I need in order to have my pod accessible using a hostname using the internal kubernetes dns and/or my pfsense’s dns…

Any help will be greatly appreciated.
Thanks!