Originally Posted by
Phil_gretz
Look at the rear dropout, fellows! It appears that someone has gouged the dropout, creating a cratered part into which the quick release lever head will sit. As though to accommodate too short of a rear skewer or something. Yikes! Would not ride, would not keep. Take to a skilled welder and have him build that back up, grind and polish the flat to match the opening on the other side. It'll ruin the paint, but save the frame.
Looks to me like a really thick powder coating that chipped off especially if you look at the chip on the rear of the DO and on the eyelet.
I'd be more inclined to say chip off the rest of the paint where the QR needs to sit.