Inhibits wnt, nodal/nr-1 and bmp signaling in the embryo to promote head formation and anterior neural induction. Within the endoderm, acts as an essential mediator of nodal/nr-1-induced cardiogenesis in the overlying mesoderm (By similarity). The long chain interacts with nodal/nr-1, bmp4 and wnt8, thereby inhibiting their function. The short chain interacts with nodal/nr-1 but not bmp4 or wnt8 (By similarity). Expressed in the anterior endomesoderm of the early gastrula with expression expanded laterally around the margin at the endoderm/mesoderm boundary. Expressed in the gastrula stage of embryos but becomes absent by late neurula stage. Belongs to the DAN family.