What happens when a type adds driving such as:

newtype SupplyT s m a = SupplyT (StateT [s] m a)

    deriving (Functor, Monad, MonadTrans, MonadIO)

Two questions:

How does the deriving implement the instance?

Is there a way for me to add my own classes in the deriving? for example

newtype .....
deriving( xyz)

Thanks