Silky Lichen

The Silky Lichen is a item used to craft the Silk-Edge Sword. The recipe requires the Silky Lichen, Leaping Sword and 24 Enchanted Fermented Spider Eyes, the same amount necessary to craft the Leaping Sword.

It can be obtained by talking to Gustave after beating the Woods Race in 18 seconds or less.

Trivia

 * There was a glitch that allowed you to obtain it instead of the Pig's Foot in the End Race, but it was patched since then. It was eventually properly added in V0.7.4
 * There was a Glitch that gives you this instead of the Hunter Knife.