Does appear to be a zinc rot blistering up under the copper plate around the LI. If it is (I say as a joke) it will soon fall away oozing rotting zinc.
Because I can't see any rupture in the current image, if its rock solid maybe a die chip. Note: I see none listed for this location and year.
The rim looks similar to whats seen on slighty misaligned die strikes. Would need to see the whole obverse for that call. Thanks, Doug.
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