Nerf the effects of diluted potions in order to disincentivize diluting them and fix alchemy abuses. Start with healing potions: a diluted healing potion of any type heals only half as much as otherwise, and either confers half as much max HP as an undiluted potion or possibly no max HP at all. When alchemizing with diluted potions, half of the amount dipped will bubble or steam off as water, wasting those potions entirely (e.g. 6 diluted healings + gain energy = 3 diluted extra healings).