Liquid Coralium is found in the Abyssal Wasteland instead of water. Pick it up with a bucket to generate this item.
In a Transmutator, it is capable of Transmuting 100 items. The bucket is NOT consumed and will turn into an Empty Bucket upon Transmutation of the first item.
The player needs a Bucket of Liquid Coralium to craft a Transmutator, along with creating the Oblivion Deathbomb, or using it for its subsequent ritual.
In Rituals, a bucket of Liquid Coralium is needed to create one piece of the Depths Armor, along with being a key ingredient for Ritual of the Sleeper.
As Liquid Coralium is capable of polluting Water, the player can technically create an infinite source of Liquid Coralium using a generated pool of water in a large area, then polluting it with a single bucket of Liquid Coralium. This does not work in Ocean or Deep Ocean Biomes, as Cobblestone will mysteriously generate to barricade the pollution.