Well-known way in which Christmas is enjoyed (10)

I believe the answer is:

celebrated

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'well-known' is the definition.
(thesaurus)

I cannot understand how the rest of the clue works.

(Other definitions for celebrated that I've seen before include "Notable" , "Did something enjoyable (to mark an event)" , "Publicly honoured" , "Eminent" , "Observed (festival); famous" .)

I've seen this clue in The Guardian and The Globe and Mail.

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