Minimum number of Pins to use for multiplexing LEDs
It depends on the style of multiplexing.

For basic Row-Column multiplexing you have N=RC - the number of LEDs is the number of rows multiplied by the number of columns. The LEDs, of course, don't have to be arranged physically in rows and columns, those are purely logical wiring concepts.

For Charlieplexing (used by the LOL shield) it's slightly more complex. The formula is: N = n² - n, where n is the number of pins, and N is the number of LEDs they can drive.

Charlieplexing can multiplex far more LEDs than traditional R/C multiplexing, but is harder to program for and wire up.