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The output has to be a square wave waveform. It is, as suggested by FvM, it's due to high gate capacitance of MOSFET. You should note that SG3524, unlike the SG3525 and other such drivers, does not have totem-pole drivers at the output. You're attempting to drive a MOSFET at a high frequency, but due to the gate capacitance and the high resistance in the way of charging that capacitance (the 2k pull up resistor), the wave form "changes" or distorts". It probably something that curves upwards and reaches a peak and stays there, ie, it has a high rise time to maximum voltage. Use a totem-pole or push-pull driver at the output that can charge the MOSFET gate capacitance quickly, thus not distorting the output waveform. A simple totem-pole would suffice.
Hope this helps.
Tahmid.