Involved in regulation of intracellular signaling pathways during development. Negatively regulates the Nodal signaling pathway, possibly by promoting the lysosomal degradation of Nodal receptors, such as TGFBR1. May be involved in control of the morphogenetic behavior of kidney ureteric bud cells by keeping cells epithelial and restraining their mesenchymal character. May play an inhibitory role in the re-epithelialization of skin wounds by attenuating TGF-beta signaling. Can form homodimers and heterodimers with DACT1 or DACT3. Interacts with CSNK1D, PKA catalytic subunit, PKC-type kinase, CSNK2B, DVL1, DVL2, DVL3, VANGL1, VANGL2, TGFBR1, CTNNB1, CTNND2, CTNND1, LEF1, TCF7, TCF7L1 and HDAC1. Expressed in kidney (inner medullary collecting duct). Expressed in epidermal keratinocytes and hair follicles. Expressed throughout the epiblast at the onset of gastrulation and in somites, the neural tube and gut at later stages of development. In the developing kidney is expressed in the ureteric bud/collecting duct epithelium. The C-terminal PDZ-binding motif may mediate interaction with the PDZ domains of DSH (Dishevelled) family proteins. Involved in non-canonical Wnt signaling only when massively overexpressed. Belongs to the dapper family.