LP is the representation of you share in the pool. The value, the cost of LP is determined by the amount of reserves in the pool at the given moment. It's amount has nothing to do with the IL.
For example, if you remove and add this liquidity in few minutes latter (given no trades happened during this period or exchange rate didn't change), you will receive the same amount of LP tokens as you had before.
Let's say, there is 10,000 shares and 30,000 XTZ and 90,000 QUIPU in the pool. Exchange rate is roughly 90,000/30,000=3 QUIPU/TEZ
If you have 500 LPs and withdraw it you will get 30,000*500/10,000=1500 TEZ and 90,000*500/10,000=4,500 QUIPU.
If you put your assets(1500 TEZ and 4,500 QUIPU) back to the pool, you will get min(1,500*10,000/30,000=500, 4,500*10,000/90,000=500)=500.
Nothing changed, right?
With the migration, things became a bit more complicated.
Exchange rate is the same 3 QUIPU/TEZ. But reserves under LP can be different.
Let's say the pool has 1000 LPs and 500 TEZ and 1,500 QUIPU in reserves. Exchange rate is the same, as I mentioned, 1,500/500=3 QUIPU/TEZ.
If you deposit your assets withdrawn from the first pool (1500 TEZ and 4,500 QUIPU), you will end up with min(1,500*1,000/500=3,000, 4,500*1,000/1,500=3000)=3,000 shares.
All of these actions have no effect on the IL, because IL become permanent when you separate assets and start selling them or using separately
