Protease that catalyzes two essential functions in the smo-1 pathway: processing of full-length smo-1 to their mature forms and deconjugation of smo-1 from targeted proteins (By similarity). May deconjugate smo-1 from the cadherin protein hmr-1 and plays a role in its recruitment to and the maintenance of adherens junctions (PubMed:26412237). Required for epidermal morphogenesis during embryonic development (PubMed:26412237). First expressed mid-gastrulation, at the 200-cell stage of embryogenesis with expression increasing during epidermal morphogenesis. Also expressed in epidermal cells and also in the underlying neuroblasts during embryonic development. 64% of embryos arrest in between late gastrulation and epidermal morphogenesis with failures in embryogenesis occurring during late gastrulation, epidermal enclosure and elongation. RNAi-mediated knockdown results in arrest in 29% of embryos which display a range of embryonic abnormalities including increased bulge formation (humpback phenotype), epidermal enclosure defects where the ventral cleft fails to close during embryogenesis, impeded or inhibited ventral neuroblast cell migration and irregular cell shape and positioning. Knockdown also results in failure of the catenin-cadherin complex, specifically the cadherin protein, hmr-1 to localize to adherens junctions, but to accumulate along the basolateral membrane of the cell. Belongs to the peptidase C48 family.