Acts coordinately with phospholipase atgl-1 within the lipolytic cascade to distribute stored energy to tissues to maintain energy levels during the dauer phase. Localizes atgl-1 to lipid droplets, possibly to facilitate triglyceride hydrolysis. Regulates lipid droplet size, lipid content, the exchange of lipids between lipid droplets and fusion of lipid droplets during the dauer phase. Interacts with atgl-1; the interaction tethers atgl-1 to lipid droplets. Expressed in the hypodermis and intestine. Increased survival of dauer larvae and reduced lipase activity in a daf-2 constitutive dauer phase mutant background. Belongs to the peptidase S33 family. ABHD4/ABHD5 subfamily.