DAGL beta uses calcium as a cofactor to catalyze the hydrolysis of diacylglycerol (DAG) to 2-arachidonoyl-glycerol (2-AG), a reaction that is required for axonal growth and for retrograde synaptic signaling at mature synapses. DAGL beta functions at an optimal pH of 7 and its activity is inhibited by p-hydroxy-mercuri-benzoate and HgCl2, but not PMSF. There are three isoforms of DAGL beta that are produced as a result of alternative splicing events.