We consider two species of hard-core bosons with density dependent hopping in a one-dimensional optical lattice, for which we propose experimental realizations using time-periodic driving. The quantum phase diagram for half-integer filling is determined by combining different advanced numerical simulations with analytic calculations. We find that a reduction of the density-dependent hopping induces a Mott-insulator to superfluid transition. For negative hopping a previously unknown state is found, where one species induces a gauge phase of the other species, which leads to a superfluid phase of gauge-paired particles. The corresponding experimental signatures are discussed.