Enables deubiquitinase activity. Involved in cellular response to insulin stimulus; positive regulation of fat cell differentiation; and protein catabolic process. Acts upstream of or within several processes, including adult walking behavior; eating behavior; and protein deubiquitination. Predicted to be located in cytosol and nucleoplasm. Predicted to be active in cytoplasm. Is expressed in several structures, including embryo ectoderm; genitourinary system; gut; hemolymphoid system gland; and liver. Orthologous to human UCHL3 (ubiquitin C-terminal hydrolase L3). [provided by Alliance of Genome Resources, Apr 2022]