Pretty much the same way as in soil. It is proven that plants do not need soil to grow, people have been growing just in water for many years, this practice is known as Hydroponics.
Most people grow lilies by way of root runner cuttings not seed (in my country anyway) Aquatic plants take their oxygen from the water itself. Will not grow in stagnant water.
I used to think they had openings stomata on upper surface of leaf rather than lower, to facilitate that they modify to get a hydrophobic surface, but how do they do that when leaves are underwater, while germinating.
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