Exhibits carboxy-monopeptidase as well as carboxy-dipeptidase activity (By similarity). Plays an essential role in molting, a process during larval stages in which a new cuticle is formed and the old cuticle is shed (Probable) (PubMed:15555728). Required for the degradation and shedding of the old cuticle (Probable) (PubMed:15555728). Release of C-terminal amino acid residues with broad specificity, but lacks action on C-terminal proline. Shows weak endopeptidase activity. The disulfide bridge formed between Cys-39 in the propeptide and the active site residue Cys-96 may prevent activation of the zymogen through formation of a reversible covalent bond with the active site residue. Localizes in secretory vesicles in the hypodermis of L3 larvae. Expressed in larvae during the L3/L4 molting stage, specifically in both the old and new cuticles (PubMed:8939969, PubMed:16186127, PubMed:15555728). In L3 larvae, expressed in the hypodermis, the basal lamina of the pseudocoelom, the glandular part of the esophagus and in cells of the epidermal cord (PubMed:8939969, PubMed:15555728). RNAi-mediated knockdown in L3 larvae impairs the separation between the L3 cuticle and the newly synthesized L4 cuticle resulting in incomplete molting. Belongs to the peptidase C1 family.