How does Stabil actually keep your fuel fresh?

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I know this stuff does something. I've had gasoline sit for a season and smell horrible, and run horrible if at all without Stabil. And I've never had a problem with anything when I did use Stabil.

What is in this stuff? And how does it actually work?
 
Thanks guys! Good to see there is a product that still actually does what it says it does. Love the stuff lol Now, to add to this (maybe I should search first) how does the Ethanol Stabil differ from the regular stuff? Since all the fuel around here is E10, is it still ok to use the red stabil in fuel? or is the Ethanol formula the way to go? I've used Ethanol Stabil in my boat for the last couple of years after running into a problem with water contamination in my fuel system. I poured quite a lot of water out of my boats fuel tank a couple of years ago.
 
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