Thanks for starting this discussion. I’m both a yETH depositor and YFI holder. I am for making the depositors whole. There are a few different ways that the protocol could make up the shortfall of the total lost minus recoveries to date (~$6.6 million in ETH).
The obvious source to cover the shortfall would be the Yearn Treasury. However, there are other options that I have shared in Discord. One option would be for Yearn to secure a loan to cover the shortfall. Similar to what Resupply did with Yearn recently. See YIP-86.
Another option could be minting more YFI to sell for ETH to cover the shortfall. If this route was chosen, it could also be possible to allow veYFI holders first access to the printed YFI at a set discount to current spot price for a few days to allow interested veYFI holders to purchase some to avoid some dilution. After that period passed, if there was any minted YFI left over, Yearn could sell it into the market for ETH.
Lastly, it may make sense to combine some of these options to make up the shortfall.