A Cmos CD4066 transmission gate has a non-linear on-resistance of about 100 ohms. If it feeds a signal to a load that has a resistance as low as about 1k ohms or less then the signal level at its output is reduced and the non-linearity shows up on the output. The on-resistance and distortion are less at a higher supply voltage. A CD4051 is a 8:1 mux IC.
If the load resistance is 10k ohms or more then the level is not attenuated and the distortion is much less.
The signal must swing its voltage within the supply voltage of the transmission gate so it must be biased at a voltage that is about half the supply voltage.
- describe your setup completely (transistor parameters, supply voltage, signal frequency, load)
- determine the on-resistance versus applied DC voltage level curve for your transmission gate
Everyone was assuming that you have a standard CMOS transmission gate. It turns out that your transmission gate is NMOS only. So the observed behaviour is expectable.
The Cadence schematic is awful to look at since it is a negative image with a black background.
Usually I invert it so it has a normal white background but since it is covered with Chicken Pox dots then I will not bother.