Relax and laugh out loud by lake (4)

I believe the answer is:

loll

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'relax' is the definition.
(I've seen this in another clue)

'laugh out loud by lake' is the wordplay.
'laugh out loud' becomes 'lol' (this might be a standard abbreviation of which I'm unaware).
'by' means one lot of letters go next to another.
'lake' becomes 'L' (geographical abbreviation).
'lol'+'l'='LOLL'

'and' is the link.

Can you help me to learn more?

(Other definitions for loll that I've seen before include "Slouch" , "Hang loosely; sit lazily" , "Lounge around" , "Lie sprawled" , "Hang loose" .)

I've seen this clue in The Telegraph.

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