The term 'sheds skin' can be summarized by the crossword solution 'MOLTS'. Molting is a process in which animals, such as snakes, lizards, and insects, shed their outer layer of skin or exoskeleton. This process is necessary for growth and development, as the new layer of skin or exoskeleton is larger than the old one. Molting also helps animals to rid themselves of parasites and other unwanted organisms.