Proxmox VE Logical Volume in RAW format?

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http://serverfault.com – I added a Volume group in Proxmox VE as Storage for KVM VMs. A new Logical Volume will be created for each VM, but in Proxmox VE under The Defined Storage which shows list of created Logical Volumes I see my Logical Volume marked as RAW format. Is this a RAW image or a Logical Volume (LVM)? But my main question, Does this really avoid the overhead of going through the filesystem layer on the host system ? (HowTos)