Modular mechanism of Wnt signaling inhibition by Wnt inhibitory factor 1

WIF-1 inhibits Wnt signaling by binding Wnt ligands. Structural and biochemical analysis of WIF-1 shows the EGF-like domains wrapping back to contact the ligand-binding WD domain, which also binds a phospholipid near the interaction site for Wnt ligands. The tail of EGF-like domains also harbors a proteoglycan binding site, indicating that all domains of WIF-1 contribute to the regulation of Wnt signaling in vivo . Wnt morphogens control embryonic development and homeostasis in adult tissues. In vertebrates the N-terminal WIF domain (WIF-1 WD ) of Wnt inhibitory factor 1 (WIF-1) binds Wnt ligands. Our crystal structure of WIF-1 WD reveals a previously unidentified binding site for phospholipid; two acyl chains extend deep into the domain, and the head group is exposed to the surface. Biophysical and cellular assays indicate that there is a WIF-1 WD Wnt-binding surface proximal to the lipid head group but also implicate the five epidermal growth factor (EGF)-like domains (EGFs I–V) in Wnt binding. The six-domain WIF-1 crystal structure shows that EGFs I–V are wrapped back, interfacing with WIF-1 WD at EGF III. EGFs II–V contain a heparan sulfate proteoglycan (HSPG)-binding site, consistent with conserved positively charged residues on EGF IV. This combination of HSPG- and Wnt-binding properties suggests a modular model for the localization of WIF-1 and for signal inhibition within morphogen gradients.