From reading about Amphotericin B antifungal, I understand it is quite a toxic medicine for kidney, but I am not able to find any details as to how Liposomal version of same medication is so safe, in end are not we eating same chemical, how doe s liposomal version become less toxic?
This is an interesting question. Initially, the mechanism for the reduced toxicity (1992) was unknown, as stated in the abstract of a well-cited paper. A paper from Oxford Radcliffe hospital in 1998 said that 15.5% of all their spending on antimicrobial agents was on these new, expensive drugs, available in many formulations, and argued the evidence supporting their use was scanty with a key study available only as an abstract. A review in 2013 seems more favorable, but I haven't looked at the full text - by that time, one of the products with reactions at the injection site had been withdrawn, and the costs were coming down. At the level of the individual, these stories are poignant.
The paper from Oxford Radcliffe wrote of one formulation "It has been suggested that the large particle size of ABLC (1.6–11 μm) leads to its rapid clearance by reticuloendothelial cells, resulting in lower plasma levels." This idea has been pursued in numerous other papers (example), but I lack the expertise to evaluate it against other potential explanations.