Contributes to various developmental events through its interactions with multiple signaling pathways. Dorsalizing factor which functions as an inhibitor of bone morphogenetic proteins (BMP) during gastrulation. Promotes dll1-dependent activation of Notch signaling and is required for neural crest formation. Induces endoderm and dorsal mesoderm formation by enhancing nodal2/Xnr2 activity while inhibiting ventrolateral mesoderm formation through inhibition of fgf8