Liposomal formulations are specialized drug delivery systems that encapsulate active ingredients within tiny spherical structures called liposomes. These liposomes are made from phospholipids, which are similar to the natural membranes of cells. This design helps protect the encapsulated substances from degradation and enhances their absorption in the body. The primary advantage of liposomal formulations is their ability to improve the bioavailability of drugs, meaning more of the active ingredient reaches its target site. This technology is commonly used in pharmaceuticals and nutraceuticals, allowing for more effective treatments with potentially fewer side effects.