  By analyzing SU(3)xU(1) invariant stationary point, studied earlier by
Nicolai and Warner, of gauged N=8 supergravity, we find that the deformation of
S^7 gives rise to nontrivial renormalization group flow in a three-dimensional
boundary super conformal field theory from N=8, SO(8) invariant UV fixed point
to N=2, SU(3)xU(1) invariant IR fixed point. By explicitly constructing
28-beins u, v fields, that are an element of fundamental 56-dimensional
representation of E_7, in terms of scalar and pseudo-scalar fields of gauged
N=8 supergravity, we get A_1, A_2 tensors. Then we identify one of the
eigenvalues of A_1 tensor with ``superpotential'' of de Wit-Nicolai scalar
potential and discuss four-dimensional supergravity description of
renormalization group flow, i.e. the BPS domain wall solutions which are
equivalent to vanishing of variation of spin 1/2, 3/2 fields in the
supersymmetry preserving bosonic background of gauged N=8 supergravity. A
numerical analysis of the steepest descent equations interpolating two critical
points is given.
