This word is a combo word. Chilax(1) mixes the two defintions of Relax and chill.
Also can be used in forms such as Chilaxin(2), or Chilaxed(3).
(1)Man would you just chilax, your makin a big deal out of nothin.
(2)Last night Johny and I, we was straight chilaxin, we didnt do a thing.
(3)Last week while I was on vacation a just chilaxed at the house.