It looks like it was damaged in either a washing machine or a drier. I'd guess that one side faced a safer, smooth surface while the other was caught on the moving surface. Spendable.
Somebody with to much time and a knife is a likely option. It is "post mint damage PMD" and the bank will replace it I think.
I'm intrigued that you actually think that's silver. Google - Copper plated zinc cents. That's what our current cents are made of..
If that's all it takes to intrigue you we are in for a rough period here on CT. It's zinc and it's damaged.
Yeah some of the things people do to cents ive found half melted zincs, sand papered till smooth on one side, and a couple spray painted ones.