sudo apt install lxd

For ZFS, follow the install section of the ZFS guide

If you are not restarting use the following command to add your user to the group.

newgrp lxd


sudo lxd init

Run through the following setup:

Name of the storage backend to use (dir or zfs) [default=zfs]: zfs
Create a new ZFS pool (yes/no) [default=yes]? yes
Name of the new ZFS pool [default=lxd]: LXDPool
Would you like to use an existing block device (yes/no) [default=no]? no
Size in GB of the new loop device (1GB minimum) [default=86]: 80
Would you like LXD to be available over the network (yes/no) [default=no]? no
Do you want to configure the LXD bridge (yes/no) [default=yes]? yes

Answer yes to the networking dialogs, select ipv4/6 subnets.

Run lxc to generate a client certificate.

lxc list

Create container

lxc launch ubuntu:16.04 xenial-container